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d) Break even sales change that would change the profits by the same amount as a reduction in price.

This proves that the marketing strategy increased mid-week sales from 20% to 30%. This sales mix caused variances in the actual operating income and the budgeted operating income. The flexible budget, flexible-budget variances and sales volume variances provide further analysis into the profitability of the operations.

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. The local Mastermind store sells innovative educational toys. Part of their service is giving advice to customers about the best toys for a particular age group, which requires having more customer service representatives in the store. During the month long Christmas buying season, it makes half of its $500,000 yearly sales. Its contribution margin on average is 40% and its fixed costs for the year are about $150,000. The owner believes that she could make even higher sales, if she had more customer service representatives on the floor during the peak season. She plans on hiring four more people for 200 hours each at $20 per hour. How much additional revenue does she have earn to the nearest dollar

Question 3: Identify all costs associated with this venture. Categorize these costs as fixed or variable.

The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high.

In this table, it reflects the changes in fixed plant overhead from $420,000 to $378,000. The company still has the fixed selling and administrative expense per quarter of $118,000. The new company fixed overhead is now at $496,000 from the past $538,000 ($42,000) change from past to

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

3. For each of the individual overhead accounts at Bridgeton, do you believe the given cost is variable, fixed, or something else? Why? (Use information or evidence from the case to support your evaluation, if possible. For most of these costs, there is no single right answer from the case information, so the goal is to come up with a reasonable estimate.)

Income and cost changes because of different levels of activity they carry out in the business. If the sales of the business increase so will the cost. This is because; more production will take place for more sales. Income and cost can be changed by fashion as well. The business will need to be up to date with the fashion. This change will increase the cost as well. But if the business can be up to date, it will bring a higher income as their products going to be popular.

According to this method, every unit of the product is assigned all direct, fixed, and variable costs. This method includes the cost of direct materials and labor as well as a portion of the overhead costs associated with it in the final costing of every unit of the product.

(b) Calculate by how much the proposed addition will either increase or reduce operating income. Show all work.

Option 1: Sales on Q1, Q3 and Q4 less 30% than Q2. That’s mean the volume of Q2 going to increase 30% than other and the commission will increase 30% as well

8. I would like to remove allocated costs and fixed overheads and see what would be the variable cost. If this is done, you can see that the variable cost hovers around 7 FF. ( Not many of you have done this)

One of the most important parts of this financial plan is that rates be increased on weekends. In the information, it also stated that most customers visited on the weekends. If the prices were increased over the weekends, even if not by much, the hotel could make more revenues.