The Portable MBA in Finance and Accounting, 3rd Edition

108 Understanding the Numbers alternatives (see Exhibit 3.5). ‘Stay with the publisher ’ shows that you make $12 for every book ...

Cost-Volume -Profit Analysis 109 what is sacrificed when we choose one alternative, selling through the Web site, over the next ...

110 Understanding the Numbers Fifty dollars a book for 5,000 books was their offer to me. Since we just went over the numbers, I ...

Cost-Volume -Profit Analysis 111 site reference, the 10% commission can also be avoided. I looked into the Web-site contract, an ...

112 Understanding the Numbers relevant cost analysis before granting any price concessions to customers on a selective basis. CV ...

Cost-Volume -Profit Analysis 113 focusing on a contribution margin per unit, when we have multiple products we must base our cal ...

114 Understanding the Numbers percentage of 30.1%. Our fixed costs are still $100,000 per year, so we now ad- just the general r ...

Cost-Volume -Profit Analysis 115 Solving for x, We find that you must do about $1.130 million in sales to be as well-off.” “Hmm. ...

116 Understanding the Numbers sales revenue target to meet your profitability goal will drop only a small amount—from about $1.1 ...

Cost-Volume -Profit Analysis 117 and ability of those who provide accurate process cost estimates. Since Abbey’s business model ...

118 Understanding the Numbers is called visual fitbecause one simply draws a straight line through the data that “best fits” the ...

Cost-Volume -Profit Analysis 119 For the example and data set in Exhibit 3.12, the steps would be as follows: High and low poin ...

120 Understanding the Numbers analyzed. To emphasize this, the cost function, Total Cost=(76%)Revenue +$5 million, was used to g ...

Cost-Volume -Profit Analysis 121 THE ROLE OF PRICING IN CVP ANALYSIS CVP analysis is often erroneously used to set prices. The P ...

122 Understanding the Numbers The jury awarded damages of $150 million to be paid to Brooke by Brown & Williamson. However, ...

Cost-Volume -Profit Analysis 123 Dumping If a foreign company is the predator, there is no inherent difference in the tac- tics ...

124 Understanding the Numbers Horngren, Charles, Cost Accounting: A Managerial Emphasis,9th ed. (Upper Saddle River, NJ: Prentic ...

Cost-Volume -Profit Analysis 125 To compute the slope, find a point that the line intersects and then measure the “rise-over-ru ...

126 4 ACTIVITY-BASED COSTING William C. Lawler Dave Roger, CEO of Electronic Transaction Network (ETN/ W), sat stunned in his of ...

Activity-Based Costing 127 return. Now, since you are a service provider rather than a manufacturer, ex- plain your business mod ...