Cost Behavior Analysis powerpoint presentation

User Generated

Pryrfgr1990

Business Finance

Description

  • Create a minimum 3-slide presentation, including detailed speaker notes, as the committee's consultation team and respond to the following:
  • Shelley has just learned you are calculating the break-even point in dollars of ticket sales. She is still convinced the Club can make a profit using the assumptions above (second bullet point above).
    • Calculate the dollars of ticket sales needed to earn a target profit of $6,000.
    • Calculate the dollars of ticket sales needed to earn a target profit of $12,000.
  • Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues calculated above (third bullet point above) to earn a $6,000 profit? Show calculations to support your answers.
  • A few members in the Circular Club do not want to continue with the annual rodeo. However, Shelley is insistent the Club must continue to conduct the rodeo as an annual fundraiser. Shelley argues she has spent hundreds of dollars on western boots, hats, and other items of clothing to wear to the rodeo. Are the expenses related to Shelley's purchases of rodeo clothing relevant costs? Why or why not?

Show your work in Microsoft® Word or Excel®.

Complete calculations/computations using Microsoft® Word or Excel®.

Format the assignment consistent with APA guidelines.

Click the Assignment Files tab to submit your assignmen

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Explanation & Answer

Attached.

Dollars of Ticket Sales - Shaw
• Break-even point = Fixed Costs + Target profit
Contribution margin ratio
contribution margin ratio= 0.96
• For target profit of $6000,
• Break-even point = $51,000 + $6,000 = 59,375
0.96
• Dollars of ticket sales = $59,375- $25,600
= $33,775
...


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