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Discussion

The description of the variable costs, fixed costs, and interaction with the contribution margin

concepts that you did is good. I would like to add additional elements to the discussion.

Contribution Margin analysis is a powerful tool in management accounting. The calculation of the sales

price minus the variable costs is the contribution margin. The contribution margin gives you the gross

profit that your organization realize on the sales.

The gross profit realized through the contribution margin absorb the fixed costs of the organization. You

can determine with your contribution margin by units the number of units that you will need to sell to

cover your fixed cost; the breakeven point in unit. You can also use this tool to calculate how many

units you will need to sell to realize the desired profit after having cover your fixed costs (breakeven

point).

The contribution margin gives you the minimum price that you will need to sale your product. In some

circumstances you may have the opportunity to sell special orders below the regular selling price of your

products. This could be an opportunity to use the unused production capacity of your organization to

realize more profits. The price should not be under your contribution margin to cover all your variable

costs.

Another category of costs that an affect your contribution margin are semi-variable costs. Semi-variable

costs (also known as mixed cost) are costs with both fixed costs and variable costs. Such costs are fixed

up to a level of production and become variable after production crosses that level. The contribution

margin and the fixed costs will be different at various level of productions.

Management accounting is not a fixed science and management accountant needs to be flexible to

analyze the concepts of variable costs, semi-variable costs, fixed costs, breakeven point, and desired

profits within different level of unit sales. Opportunity can arise to sell some units at a lower price in

special circumstances of fixed costs not completely used by the organization.

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Discussion The description of the variable costs, fixed costs, and interaction with the contribution margin concepts that you did is good. I would like to add additional elements to the discussion. Contribution Margin analysis is a powerful tool in management accounting. The calculation of the sale ...
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Tags: business and finance Financial Management contribution margin Variable Costs cost volume profit

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Keiser University Restaurant Business During COVID 19 Pandemic Discussion

1- Discuss how inventory levels can impact queuing theory for food or alcohol distribution (Compare food trucks, fast food ...

Keiser University Restaurant Business During COVID 19 Pandemic Discussion

1- Discuss how inventory levels can impact queuing theory for food or alcohol distribution (Compare food trucks, fast food and sit down restaurants).2-Given the three types of establishments (and their operations) presented in this discussion, please use this thread to choose and debate which type of business you'd become involved in during a pandemic and why. 3 -reply to other studentCompare and contrast one of the other business operation types in this thread and comment on ideas presented by your peers 1- use articles provioded2- the business I would get involved in is medical supplies and protective equipment and healthcare industry which I am currently in. I have established a company Allied Protective Equipment INC which is a PPE supplier for hospitals and healthcare facilities.3-attached is the the discussion you must reply to which is number 3discussion to reply tooQueuing theory is a modeling and mathematical approach in operations research that is applied to waiting lines, thereby enabling individuals to estimate the resources necessary to meet the needs (Jolanta, 2015). To put it in lighter terms, queuing theory is the study of waiting in line. People are willing to queue and pay to get food. In general, restaurants can be divided into five categories; quick service, family dining, casual dining, dinner house and fine dining (Walker, 2011, p. 34-40). In every phase of business, there are steps that have to happen in order to produce, ship, stock, and sell an item. When it comes to food and alcohol distribution, one of the biggest concerns is the shelf life of the product. Restaurants, as well as food trucks, need to be aware and keep track to shelf life for such products. A survey conducted by Law et al (2004), indicated that waiting time, staff attitude and food quality significantly influence the customers’ return frequency and affect customer satisfaction. Environment and seat availability are other service factors that affect the customers’ return frequency, while food variety adds to customer satisfaction (Dharmawirya, M., Oktadiana, H., & Adi, E. 2012). In general, when we look at the queueing theory, we can conclude that it can help your business reduce costs, drive up efficiency, lastly and more important, provide better service for the customer. References:Afolalu, A. S., Adelakun, O. J., Ongbali, S. O., Abioye, A. A., & Ajayi, O. O. Queueing Theory–A Tool for Production Planning in Health Care.Dharmawirya, M., Oktadiana, H., & Adi, E. (2012). Analysis of expected and actual waiting time in fast food restaurants. Industial Engineering Letters, 2(5).Stevens, C. (2020, February 21). How Queueing Theory Can Help Your Business. Retrieved from https://www.business.org/finance/inventory-managem...

Assignment Choice #1: Planning the Audit

Assignment Choice #1: Planning the AuditReference Case Study 5-53 in the textbook.Marilyn Terrill is the senior auditor fo ...

Assignment Choice #1: Planning the Audit

Assignment Choice #1: Planning the AuditReference Case Study 5-53 in the textbook.Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended December 31, 20X4. In planning the audit, Marilyn is attempting to develop expectations for planning analytical procedures based on the financial information for prior years and her knowledge of the business and the industry, including:1. Based on economic conditions, she believes that the increase in sales for the current year should approximate the historical trend.2. Based on her knowledge of industry trends, she believes that the gross proﬁt for 20X4 should be about 2 percent less than the percentage for 20X3.3. Based on her knowledge of regulations, she is aware that the effective tax rate for the company for 20X4 has been reduced by 5 percent from that in 20X3.4. Based on a review of the general ledger, she determined that average depreciable assets have increased by 10 percent.5. Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company’s line of credit for 20X4 was approximately 12 percent. The average outstanding balance of the line of credit is $2,300,000. This line of credit is the company’s only interest-bearing debt.6. Based on her discussions with management and her knowledge of the industry, she believes that the amount of other expenses should be consistent with the trends from prior years.Comparative income statement information for Uden Supply Company is presented in the table in Case Study 5-53 in the textbook.Required: a. Describe the purpose of analytical procedures performed in the planning stage of the audit.b. Develop the expected amounts for 20X4 for each of the income statement items.c. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4.d. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer.Your paper should be 3-4 pages in length. Follow APA format, according to CSU-Global Guide to Writing and APA Requirements. Include a title page and reference page. Use two outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

2 pages

Dividend Policy At Fpl Group Inc.

Q1. Based on exhibit 5, EPL group, during the period 1989 to 1993 distributed cash to its owners in form of dividends wher ...

Dividend Policy At Fpl Group Inc.

Q1. Based on exhibit 5, EPL group, during the period 1989 to 1993 distributed cash to its owners in form of dividends where some sum of money was paid ...

Economies of Scale in the Automobile Industry Questions

the article, “The Hybrid Trap...,” and the brief case, “What Business is Rivian In? Please prepare a writeup of a mi ...

Economies of Scale in the Automobile Industry Questions

the article, “The Hybrid Trap...,” and the brief case, “What Business is Rivian In? Please prepare a writeup of a minimum of 1000 words (total) addressing the following case discussion questions: 1. What role do economies of scale and scope play in determining the current profit model for internal combustion engine (ICE) auto manufacturing? Why have no new North American auto manufacturing entrants survived in North America over the past 60 years. 2. How will electric vehicles change the competitive dynamics of the auto industry? How will autonomous driving software affect the future growth of demand in the industry? 3. What is the optimal market entry strategy for a new electric vehicle (EV) auto manufacturer like Rivian? Why will niche markets prevail? 4. What barriers and related risks still exist for new EV auto manufacturers? Why does Rivian’s current multi-market approach pose a material risk for its future survival and profit model?

Microsoft Excel, creating a workbook following steps

This assignment is a CIS 110 and this exam is , You are responsible for using appropriate formulas including functions and ...

Microsoft Excel, creating a workbook following steps

This assignment is a CIS 110 and this exam is , You are responsible for using appropriate formulas including functions and absolute references. Also required to follow about 7 steps creating different sheets in the same excel file and uploading other files into it.

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Plan To Succeed

Complete a career discovery mission every week to help me identify the best career path to take. I will achieve this by co ...

Plan To Succeed

Complete a career discovery mission every week to help me identify the best career path to take. I will achieve this by comparing organizations to ...

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Keiser University Restaurant Business During COVID 19 Pandemic Discussion

1- Discuss how inventory levels can impact queuing theory for food or alcohol distribution (Compare food trucks, fast food ...

Keiser University Restaurant Business During COVID 19 Pandemic Discussion

1- Discuss how inventory levels can impact queuing theory for food or alcohol distribution (Compare food trucks, fast food and sit down restaurants).2-Given the three types of establishments (and their operations) presented in this discussion, please use this thread to choose and debate which type of business you'd become involved in during a pandemic and why. 3 -reply to other studentCompare and contrast one of the other business operation types in this thread and comment on ideas presented by your peers 1- use articles provioded2- the business I would get involved in is medical supplies and protective equipment and healthcare industry which I am currently in. I have established a company Allied Protective Equipment INC which is a PPE supplier for hospitals and healthcare facilities.3-attached is the the discussion you must reply to which is number 3discussion to reply tooQueuing theory is a modeling and mathematical approach in operations research that is applied to waiting lines, thereby enabling individuals to estimate the resources necessary to meet the needs (Jolanta, 2015). To put it in lighter terms, queuing theory is the study of waiting in line. People are willing to queue and pay to get food. In general, restaurants can be divided into five categories; quick service, family dining, casual dining, dinner house and fine dining (Walker, 2011, p. 34-40). In every phase of business, there are steps that have to happen in order to produce, ship, stock, and sell an item. When it comes to food and alcohol distribution, one of the biggest concerns is the shelf life of the product. Restaurants, as well as food trucks, need to be aware and keep track to shelf life for such products. A survey conducted by Law et al (2004), indicated that waiting time, staff attitude and food quality significantly influence the customers’ return frequency and affect customer satisfaction. Environment and seat availability are other service factors that affect the customers’ return frequency, while food variety adds to customer satisfaction (Dharmawirya, M., Oktadiana, H., & Adi, E. 2012). In general, when we look at the queueing theory, we can conclude that it can help your business reduce costs, drive up efficiency, lastly and more important, provide better service for the customer. References:Afolalu, A. S., Adelakun, O. J., Ongbali, S. O., Abioye, A. A., & Ajayi, O. O. Queueing Theory–A Tool for Production Planning in Health Care.Dharmawirya, M., Oktadiana, H., & Adi, E. (2012). Analysis of expected and actual waiting time in fast food restaurants. Industial Engineering Letters, 2(5).Stevens, C. (2020, February 21). How Queueing Theory Can Help Your Business. Retrieved from https://www.business.org/finance/inventory-managem...

Assignment Choice #1: Planning the Audit

Assignment Choice #1: Planning the AuditReference Case Study 5-53 in the textbook.Marilyn Terrill is the senior auditor fo ...

Assignment Choice #1: Planning the Audit

Assignment Choice #1: Planning the AuditReference Case Study 5-53 in the textbook.Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended December 31, 20X4. In planning the audit, Marilyn is attempting to develop expectations for planning analytical procedures based on the financial information for prior years and her knowledge of the business and the industry, including:1. Based on economic conditions, she believes that the increase in sales for the current year should approximate the historical trend.2. Based on her knowledge of industry trends, she believes that the gross proﬁt for 20X4 should be about 2 percent less than the percentage for 20X3.3. Based on her knowledge of regulations, she is aware that the effective tax rate for the company for 20X4 has been reduced by 5 percent from that in 20X3.4. Based on a review of the general ledger, she determined that average depreciable assets have increased by 10 percent.5. Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company’s line of credit for 20X4 was approximately 12 percent. The average outstanding balance of the line of credit is $2,300,000. This line of credit is the company’s only interest-bearing debt.6. Based on her discussions with management and her knowledge of the industry, she believes that the amount of other expenses should be consistent with the trends from prior years.Comparative income statement information for Uden Supply Company is presented in the table in Case Study 5-53 in the textbook.Required: a. Describe the purpose of analytical procedures performed in the planning stage of the audit.b. Develop the expected amounts for 20X4 for each of the income statement items.c. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4.d. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer.Your paper should be 3-4 pages in length. Follow APA format, according to CSU-Global Guide to Writing and APA Requirements. Include a title page and reference page. Use two outside academic sources other than the textbook, course materials, or other information provided as part of the course materials.

2 pages

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Q1. Based on exhibit 5, EPL group, during the period 1989 to 1993 distributed cash to its owners in form of dividends wher ...

Dividend Policy At Fpl Group Inc.

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Economies of Scale in the Automobile Industry Questions

the article, “The Hybrid Trap...,” and the brief case, “What Business is Rivian In? Please prepare a writeup of a mi ...

Economies of Scale in the Automobile Industry Questions

the article, “The Hybrid Trap...,” and the brief case, “What Business is Rivian In? Please prepare a writeup of a minimum of 1000 words (total) addressing the following case discussion questions: 1. What role do economies of scale and scope play in determining the current profit model for internal combustion engine (ICE) auto manufacturing? Why have no new North American auto manufacturing entrants survived in North America over the past 60 years. 2. How will electric vehicles change the competitive dynamics of the auto industry? How will autonomous driving software affect the future growth of demand in the industry? 3. What is the optimal market entry strategy for a new electric vehicle (EV) auto manufacturer like Rivian? Why will niche markets prevail? 4. What barriers and related risks still exist for new EV auto manufacturers? Why does Rivian’s current multi-market approach pose a material risk for its future survival and profit model?

Microsoft Excel, creating a workbook following steps

This assignment is a CIS 110 and this exam is , You are responsible for using appropriate formulas including functions and ...

Microsoft Excel, creating a workbook following steps

This assignment is a CIS 110 and this exam is , You are responsible for using appropriate formulas including functions and absolute references. Also required to follow about 7 steps creating different sheets in the same excel file and uploading other files into it.

5 pages

Plan To Succeed

Complete a career discovery mission every week to help me identify the best career path to take. I will achieve this by co ...

Plan To Succeed

Complete a career discovery mission every week to help me identify the best career path to take. I will achieve this by comparing organizations to ...