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Topic: Business
Number of pages / Number of words: 3 / 607
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First, the contribution margin has changesd because there is a new variable cost to be added in: the compensation for the barber per cut of $6. Our new variable cost is now $0.40 + $6 = $6.40. Subtracted from our unit price of $12 gives a contribution margin of $5.60

unit sales price $ 12.00

- variable cost $ 6...


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Our new break-even point, using this method is 10,893 cuts.

fixed cost $ 61,000.00 = ($4/hr * 5 BARBERS * 40hrs/wk * 50wks/yr)

+ ($1750 monthly rent * 12 months)

/cont margin $ 5.60 from pt1 of q4

break even 10,892.86 = $61k / $5.60


Essay fragment

General points of the essay

4 Planning & Budgeting Compare and contrast the strategies of war planning and business planning. What internal (micro) and external (macro) environmental factors or forces are considered important for the success of planning in business and war? Contribution Margin and Breakeven Analysis Contribution Margin Fixed and Variable Cost Fixed vs. variable cost Identification and analysis Of Value Added And Non-Value Added Steps In Work Processes. Inncrease Profit Margin Planning and Budgeting Value Added Taxes Variable And Absorbtion Cost Variable or Fixed Cost Margin value added dealers (auto) Lab budgeting and cost accounting under DRGs

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