“There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient...
“There is no such thing as a fixed cost. All costs can be ‘unfixed’ given sufficient time.” Do you agree? What is the implication of your answer for CVP analysis?
Homework Answers
Answer:
CVP examination is at all times piloted for a definite time horizon. One extreme is a very short-time horizon. For example, some vacation cruises propose deep price discounts for people who bid to take any cruise on a day's communication. One day earlier to a cruise, most costs are fixed. The extra extreme is several years. Here, a considerably greater percentage of total costs characteristically is variable. CVP itself is not made any less pertinent when the time horizon grows. What occurs is that many substances classified as fixed in the short run may become variable costs with a longer time horizon.
Add Answer to:
“There is no such thing as a fixed cost. All costs can be
‘unfixed’ given sufficient...
Total Cost is a function of Variable Cost plus Fixed cost. Knowing your Total Costs can...
Total Cost is a function of Variable Cost plus Fixed cost. Knowing your Total Costs can help you make some critical decisions about the pricing and possibly distribution partner strategy you might undertake. From the following options pick the top 2 most important reasons why knowing your Total Cost helps with your marketing decisions. Select one or more: a. Knowing your total costs allows you to establish your minimum selling price. b. Knowing your total costs will help you to...
can someone help explain the proof of this problem? GIVEN: INSIDE VARIABLE COST/UNIT INSIDE FIXED COSTS...
can someone help explain the
proof of this problem?
GIVEN: INSIDE VARIABLE COST/UNIT INSIDE FIXED COSTS 28 265,000 OUTSIDE VARIABLE COST/UNIT OUTSIDE FIXED COSTS 37 224,500 REQUIRED: ANSWER PROOF BREAK-EVEN UNITS? 4,500 INSIDE OUTSIDE $ 391,000 $ 391,000 UNITS WHEN OUTSOURCING SAVES $18000? 2,500 INSIDE OUTSIDE $ 335,000 $ 317,000
What do you thing are the pros and cons of cost effectiveness analysis, and which metrics used for evaluating effectiven...
What do you thing are the pros and cons of cost effectiveness analysis, and which metrics used for evaluating effectiveness could be more useful? Please elaborate your answer and provide references.
Is dividing a government a good or bad thing? How can this problem be fixed? What...
Is dividing a government a good or bad thing? How can this problem be fixed? What happens when all three branches are controlled by the same party (think FDR)?
________ is an underlying assumption of cost-volume-profit analysis. A : All costs can be classified as...
________ is an underlying assumption of cost-volume-profit analysis. A : All costs can be classified as either variable or fixed with reasonable accuracy B : Changes in activity and other factors affect costs C : The behavior of both costs and revenues is curvilinear throughout the entire range of the activity index D : All units produced are either sold or in ending inventory
You are given the following cost data: Total fixed costs are $60.
You are given the following cost data: Total fixed costs are
$60.
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000?...
Companies should always make and sell all products whose selling prices exceed variable costs.” Assuming fixed...
Companies should always make and sell all products whose selling prices exceed variable costs.” Assuming fixed costs are irrelevant, do you agree? Explain.
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000...
Problem 1 Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. Part A a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). P & L Statement Revenue 750,000 (100 x 7500) Variable Costs -187,500 (25 x 2500) Contribution 562,500 Fixed Costs -500,000 Net income/profit 62,500 b. What is...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost...
Assume that a radiologist group practice has the following cost structure: Fixed costs $500,000 Variable cost per procedure $25 Charge (price) per procedure $100 Furthermore, assume that the group expects to perform 7,500 procedures in the coming year. a. Construct the group’s base case projected P&L statement. (See exhibit 5-5). b. What is the group’s contribution margin? c. What is the group’s breakeven point in volume? d. What volume is required to provide a pretax profit of $100,000? e. Complete...
can someone help explain the
proof of this problem?
GIVEN: INSIDE VARIABLE COST/UNIT INSIDE FIXED COSTS 28 265,000 OUTSIDE VARIABLE COST/UNIT OUTSIDE FIXED COSTS 37 224,500 REQUIRED: ANSWER PROOF BREAK-EVEN UNITS? 4,500 INSIDE OUTSIDE $ 391,000 $ 391,000 UNITS WHEN OUTSOURCING SAVES $18000? 2,500 INSIDE OUTSIDE $ 335,000 $ 317,000
You are given the following cost data: Total fixed costs are
$60.
Most questions answered within 3 hours.
-
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 25 minutes ago -
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 13 minutes ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 23 minutes ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 25 minutes ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 42 minutes ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 50 minutes ago -
Using either a FMECA approach or some other appropriate RCA
tool, identify five risk treatment actions...
asked 50 minutes ago -
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 1 hour ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 1 hour ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 1 hour ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 1 hour ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 1 hour ago