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Sunday, February 24, 2019
Variable Costs
Assignment Fixed personify Dora McKinney Hsm/260 Week 4 Instructor Greg ODonnell Fixed Costs, Vari equal to(p) Costs, and Break-Even Point Exercise 10. 1 Month Meals Served Total Costs July 3,500 $20,500Low August 4,000 22,600 September 4,200 23,350 October 4,600 24,500 November 4,700 25,000 December 4,900 26,000High In dealing with step 1-The loss in expediency volume amongst high-pitched- downcast items is (4,900-3,500) 1,400 repasts. In dealing with step 2-The difference in costs amidst the high- gloomy period is ($26,000-20,500) $5,500. In dealing with step 3-The inconstant quantity cost is instanter computed.The cost difference $5,500 is divided by the service volume of 1,400. The variable cost per unit of service is $3. 93. In dealing with step 4-Total variable costs are now computed. In the low time period the number of meals provided is 3,500. The service volume is then multiplied by the cost per unit of $3. 93. The hit variable cost for the low calendar month is $ 13,755. The alike is done to figure the total variable costs for the high month 4,900 ? $3. 93 = $19,257. In dealing with step 5-Total fixed costs for the low period are now computed. The total program cost for the low month is $20,500.If the variable costs ($13,755) are subtracted from the total costs ($20,500) the stay amount is the fixed cost at $6,745. If the same is done for the high month ($26,000 19,257) the fixed cost is $6,743. In dealing with step 6-The break-even compass point is ready to be inputed using the BEP formula and steps 1-5. The contracted service price with the City of Westchester for 45,000 meals is $5. 77. The variable costs per meal is $3. 93 per meal, exactly will earn $5. 77. The difference between the variable cost per meal and the revenue per meal is 5. 7X = 6745 + 3. 93X is $1. 84 per meal. This leaves 3,666 which is the monthly BEP. Then 3,666 ? 12 = 43,992 is the pecuniary year BEP. The WHDM needs to provide 43,992 meals during the fiscal year t o reach the BEP. The difference between the contracted meals 45,000 and the BEP 43,992 is 1,008. The potential profit is 1,008 meals ? $1. 84 a total profit of $1,855. Exercise 10. 2 The newsletter yearly salary coordinator is $6,000 and the abetter _or_ abettor total is $3,900 for both of $9,900 a fixed cost. The unit cost of preparing, impression and the mailing is $4. 0 for the period of six bimonthly issues is $4. 50 this is a variable cost. This newsletter is now $20 per annual yearly subscription. This discipline plus the BEP formula is used to add and complete the BEP. 20X = 9,900 + 4. 50X 15. 50X = 9,900 X = 639 In dealing with the BEP, I believe it will be 639. The new BEP is a acceptable solution because joined with the newsletter coordinator and with the corporation of handling up to the amount of 650 subscribers. There also is an amount of 11 subscribers that is able to subtracting the BEP Dora mckinney emailprotected com
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