Essay on Sorrell Ridge

The most suitable costing method Yeltin should adopt is the practical capacity in order to remove the factor of uncertain budgeted sales figure. For this approach and the practical capacity of 65000-22000 units, then the revised overhead costs come out to be $30. With the inclusion of material and labor costs, the cost of the cartridge stand at $52 and the additional royalty expense of $10 raises the overall per unit cost to $62. The selling price of the cartridge is fixed at $150. With this selling price, the gross margin is equal to $88. The gross margin percentage is equal to 59%. In comparison to the budgeted volume, the gross margin has increased by 14%. See below

The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &

1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?

The American Civil War was a major and crucial point in American History. It influenced the citizens of America in many ways. The War was conducted in two key areas of the United States. These parts were in the east and west of the Mississippi River. On March 8, 1862, a pivotal battle took place. A slight encounter at Pea Ridge, Arkansas led to the Union Army’s domination of the west. The Battle of Pea Ridge had a great impact on the civil war by giving control of the west to the Union Army.

The Battle of Elsenborn Ridge was a definitive, but effortful, victory of the Battle of the Bulge. On the 16th of December 1944, the Battle of the Bulge officially commenced on Belgian grounds (Cole 331). Among its many, devastating battles, the Battle of Elsenborn Ridge remains the most compelling, due to the unwavering resilience of American forces. American artillery in this battle arose with relative force, effectively withstanding and deflecting German forces. Victory, in the Battle of the Bulge, eluded American forces until the fateful Battle of Elsenborn Ridge. This was due, primarily, to the adaptive repurposing of existing weaponry, and other timely innovations. The Americans established a rigid defensive line at Elsenborn Ridge, a portion of Belgian territory, which became the fortuitous target of German attacks on the Roderhohe and Kodenhovel. The Germans were pristinely equipped in this war and content in their capacity to expel American forces. However, their hopes were tarnished as American artillery erected a formidable defense on their attacks. The American military mounted a heap of Pozit fuze shells, proximity fuses, and artillery adapted to diffuse the German forces (Cole 361). These attacks proved highly destructive amid the sight of countless German and American casualties. Hence, German

Estimates of fixed costs are reasonably straightforward and are given in the case (p.280), a total of $250,000 ($160,000+$90,000).

4. Assuming the intracompany demand for service will average 205 hours per month, what level of commercial revenue hours of computer use would be necessary to break even each month. Since the intracompany demand is known to be 205 hours, the contribution from these sales is assured to cover a portion of the fixed costs. Thus, to determine the level of commercial revenue hours required to break even, the contribution from commercial sales only needs to cover the fixed costs remaining after subtracting the fixed costs already covered by the contribution from intracompany sales.

This question gives students an opportunity to exercise their ability to interpret break-even analyses. Key teaching points should include explaining the preparation of a break-even chart, the interpretation of the break-even volume (938,799 hectoliters [HL]), and the comparison of the break-even volume to the current volume (1,173,000 HL). Another key point is that the chart in case Exhibit 5 is relevant only for the current cost structure of the company—if variable costs increase or the plant expansion is approved, the break-even volume will rise. Finally, students should be aided in understanding that “break-even” refers to operating profit, not free cash flow. The typical use of the break-even chart ignores taxes, investments, and the depreciation tax shield.

* Refer sheet “25000 Sales” for cost incurred and Gain/loss for AIFS for different scenarios and actual sales volume of 25000.

This paper will describe the problem that Pacific Oil Company faced as it reopened negotiations with Reliant Chemical Company in early 1985. Secondly I will identify and evaluate the styles and effectiveness of Messrs, Fonatine, Guadin, Hauptmann, and Zinnser as negotiations in this case. Finally I will outline what Frank Kelsey recommend to Jean Fontaine at the end of the case? Why?

There were not any units sold in the worst-case scenario. From this reason, the revenue and variable costs were zero. Therefore, there was not only no profit, but also there was $29,250 loss which is the total fixed costs. However, in the best case with $8,775 units sold which means they get revenue of $350,561. Moreover, the variable costs were $292,811 but the fix costs remained was nothing change. As the result, there was a significant profit of $58,500.

First, we have identified if there is really an insufficiency in the amount of selling prices set by the Sales Department, in reference to Exhibit 1 of the case. We did this through identifying the maximum amount of overhead costs that the company can incur for the three products and comparing it with the total overhead costs. See Table 1 for details.

A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During the year, $500,000 of merchandise (at cost) is purchased. The ending inventory is $275,000 (at cost). Operating costs are $90,000.

Through a profit margin breakeven analysis we were able to conclude that in order to breakeven with 617,731 units

Question 2: In order to compute the new breakeven point is sales tickets and sales dollars, we must break down the variable and fixed costs of which are in thousands. Please see figure 2-2 in the Appendix for the calculations. Based on the calculation, the new breakeven point in sales tickets is $2,435 and the breakeven in sales dollars is $3,063.230.