You wanted to join a booth fair, and you are aiming to get a profit that is twice as your capital. Your starting capital is $15,000.00. Make a financial plan for the booth that you will set up and the product that you will sell. You may use the sample plan below: FINANCIAL PLAN Product: Description of product: Goal: Capital: 15,000.00 Fixed Cost (Labor, Machineries, Expenses for the booth etc): Variable Cost (Materials, Ingredients, etc): Profit function: Prove that profit function will yield an amount that is twice the capital

You wanted to join a booth fair, and you are aiming to get a profit that is twice as your capital. Your starting capital is $15,000.00. Make a financial plan for the booth that you will set up and the product that you will sell. You may use the sample plan below: FINANCIAL PLAN Product: Description of product: Goal: Capital: 15,000.00 Fixed Cost (Labor, Machineries, Expenses for the booth etc): Variable Cost (Materials, Ingredients, etc): Profit function: Prove that profit function will yield an amount that is twice the capital

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

See similar textbooks

Similar questions

VVH Training is a company that provides expert training sessions on how to run your business and make it profitable. They offer these training sessions in their offices and offer catering services during the sessions.You have been hired to complete a profitability analysis and you decided to start by completing a cost analysis of the business, in order to figure out for each training sessions, what costs are fixed and what costs are variable.You were able to gather the following information about the associated costs: • Instructor: $11,000 per session • Training Material: $2,500 per session and $35 per attendee • Catering Services:• Food: $75 per attendee • Setup/cleanup: $25 per attendee• Fixed fee: $5,000 per training session The catering company has also offered VVH Training a 1,000$ discount per session, if they are willing to leave their brochures on the dinner table as a form of advertising. VVH has accepted the offer saying that it is a no-brainerRequired:1. plot a graph that…
Mavis and John have joined forces to start M&J Food Products, a processor of packaged shredded lettuce for institutional use. John has years of food processing experience, and Mavis has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think a largely manual process will have monthly fixed cost of $50,000and a variable cost of $2.50 per bag. They expect to sell 75,000 bags of lettuce per month. They expect to sell the shredded lettuce for $3.25 per 5-pound bag. John and Mavis has been contacted by a vendor to consider a more mechanized process. This new process will have monthly fixed cost of $125,000 per month with a variable cost of $1.75 per bag. Based on the above scenario: Should…
Please Help I am confused. Classifying Costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Annual bonus paid to the chief operating officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of electrical wiring throughout the airplane e. Cost of miniature replicas of the airplane used to promote and market the airplane f. Cost of normal scrap from production of airplane body g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the…
Classification of Costs The following is a list of costs from the accounting records of SunshinePool Management Inc. Each of Sunshine’s 77 customers is a swim club. Sunshine maintains eachcustomer’s pool by providing lifeguards, supplies, cleaning, and repairs.1. Lifesaving supplies2. Salaries of Sunshine’s managers3. Pool chemicals4. Sunshine’s office rental expense5. Wages of lifeguards6. Workers’ compensation insurance7. Training for lifeguards8. pH testing supplies9. Office expense, including bookkeeping and clerical10. Depreciation on cleaning and testing equipmentRequired Classify each item as direct or indirect assuming that the cost objects are each of the77 swim clubs.
Mary Jones and Jack Smart have joined forces to start M&J Food Products, a processor of packaged shredded lettuce for institutional use. Jack has years of food processing experience, and Mary has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think a largely manual process will have monthly fixed cost of $50,000 and a variable cost of $2.50 per bag. They expect to sell 75,000 bags of lettuce per month. They expect to sell the shredded lettuce for $3.25 per 5-pound bag. Jack and Mary has been contacted by a vendor to consider a more mechanized process. This new process will have monthly fixed cost of $125,000 per month with a variable cost of $1.75 per bag. Based on the above…
Let's say the following numbers are available after an analysis, what is the CTO? (contribution to overhead) Sales = $ 1.00 Variable costs = 0.8964 What is the CTO? This means the amount that can be applied. to overhead after all variable costs are paid. This was calculated as a % of sales. 7. Calculate breakeven point. How many units (dollars) of sales are needed to completely cover all costs? Breakeven = Fixed costs_ Sales dollars) 1.0 Variable costs as a portion of net sales Breakeven = Fixed Costs. Selling price per unit - variable cost per unit Fixed costs are $1,149,722. CTO figure from above. Calculate the breakeven sales volume in dollars Write your answer here. (Sales units)
Cost-Volume-Profit Analysis (CVP analysis), also commonly referred to as Break-Even Analysis, is a way for companies to determine how changes in costs (both variable and fixed) and sales volume affect a company’s profit.1. Discuss the main components of CVP analysis by providing your own numerical example and constructing a Break-Even Chart.provide the meaning of cost volume profit analysis. Provide numerical data and calculate contribution margin ratio and variable expense ratio, break even in units and in sales, changes in net income, margin of safety and degree of operating leverage. Also, state the assumptions of cost volume profit CVP analysis??
Break-Even Analysis You own a business selling burgers. It costs Php 7.00 to make one burger and that is your variable cost. You sell each burger for Php 12.50. Your cost for rent, utilities, overhead, etc. is Php 100,000 per month. How many burgers you would need to sell to break even? What should be the selling price per burger if the break-even point will be brought down to 15,000 burgers?
While preparing a flexible budget, direct material, direct labour and direct expenses are placed under which among the following head? a. Administration cost b. Semi variable cost c. Variable cost d. Fixed cost
A retail store sells a popular cosmetic called Devine and the store manager was given $120,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $28 per bottle, a contribution margin of 0.35, a customer defection rate of 18 percent, and a repurchase frequency of five times a year. If these improvement funds could be used to (a) increase the contribution margin to 0.40 or (b) reduce the customer defection rate to 16 percent or (c) increase the repurchase frequency to seven times per year. Assume all other variables remain at the base case level for each of the three improvement options. Use the Excel template VLC to calculate the VLC for each option and summarize your answers using the table below. Round your answers to the nearest cent. Contribution Repurchase Defection Price Margin Frequency Rate VLC in $ $28 0.35 5 18% $ (a) $28 0.40 5 18% $ (b) $28 0.35 5 16% $ (c) $28 0.35 7 18% $…
utility expenses are considered as indirect cost. True or false?
A retail store sells a popular cosmetic called Devine and the store manager was given $150,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $30 per bottle, a contribution margin of 0.30, a customer defection rate of 18 percent, and a repurchase frequency of five times a year. If these improvement funds could be used to (a) increase the contribution margin to 0.34 or (b) reduce the customer defection rate to 16 percent or (c) increase the repurchase frequency to six times per year. Assume all other variables remain at the base case level for each of the three improvement options. Use the Excel template VLC to calculate the VLC for each option and summarize your answers using the table below. Round your answers to the nearest cent. (a) (b) (c) Contribution Price $30 $30 $30 $30 Repurchase Margin 0.30 0.34 0.30 0.30 Defection Frequency Rate 5 5 5 6 What is the best way to use $150,000 in improvement funds? The best…