Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Strategy

Step 2

Calculation of First Year Break Even Points Calculation of First Year Break Even Points
Note M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 1st 1st 2nd 3rd 4th 1st
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year Qtr Qtr Qtr Qtr Year
Stores
Multiply by 200 carts
Total Carts
Multiply by Revenue per cart
Total Revenues 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Variable Costs (VC)
Amortization (2 year S/L)

Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis.
2
Printing 3
Replacement (even distribution) 4
Cart Rental (10% Revenue) 5
Mktg. Sales & Comm. 6
Grocery Store Operations 7
Total VC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Contribution Margin (CM) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
CM per Unit/Cart ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0! ERROR:#DIV/0!
Fixed Costs (FC)
Accounting & Audit 8
Advertising (even distribution) 9
Auto Lease 10
Bank Charges 11
Entertainment & Promotion 12
Insurance 13
Legal 14
Management Fees 15
Office & Sundry 16
Public Relations 17
Rent 18
Salaries & Benefits 19
Stationary & Printing 20
Telephone & Faxc 21
Travel & Accommodation 22
Total FC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Expenses (VC + FC) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Net Operating Income 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Break Even Point in terms of carts ERROR:#DIV/0!

Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201

BE (Carts) = Total FC / (CM per Unit/Cart)

ERROR:#DIV/0!

Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201

BE (Carts) = Total FC / (CM per Unit/Cart)

Break Even Point in terms of stores ERROR:#DIV/0!

Burcicki, Jim: The Equation Method – Managerial Accounting, 15th ed., Page 201

Break Even = Q

Unit CM = CM / Total # of Stores

Profit = Unit CM x Q – Fixed Expense


Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201

BE (Carts) = Total FC / (CM per Unit/Cart)

ERROR:#DIV/0!

Burcicki, Jim: The Equaion Method – Managerial Accounting, 15th ed., Page 201

Break Even = Q

Unit CM = CM / Total # of Stores

Profit = Unit CM x Q – Fixed Expense


Burcicki, Jim: Will cost 15k so I am assuming the expense is being accrued and therefore expensed in December as an adjusting entry.

Burcicki, Jim: The author expenses the 10k in January. However, it states that the 10k will be purchased during the first quarter – first three months – in sufficient quantities to last the entire year. This should be a prepaid and then expensed during the year. With no set amoutns, I assumed an even distribution throughout the year.

Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis.

Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201

BE (Carts) = Total FC / (CM per Unit/Cart)

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

MGMT496

SEE ATTACHED Write a 600-word essay describing how the content from your artifacts will assist you once you graduate? How do they add value and effectively measure what you have learned in the program SOME ARTIFACTS ARE ATTACHED

chapter 3

For this exercise, assume you are the owner of a small electronics firm based in the American Midwest. Your research department has developed a cellular phone that translates conversations into any of 24 languages. From conversations with business associates and friends, you have identified two especially attractive overseas markets—Brazil and

Discussion Board 3 ( Healthcare Reimbursement)

In your post, compare the characteristics and claims filing processes of private and public payers. What type of ethical issues could arise with personnel during the claims filing processes? Imagine yourself sitting around a conference table with your instructor and classmates. This discussion topic will be similar. It is a

Reading 3

instructions and readings are attached  For section #2 Comparative Insight (7 points) I also attached week 2 reading (Staffing Models)

MATH120

SEE ATTACHMENT  Conditional Probability: What affect does a condition have on the probability?  Let’s compare and find out. Example:   Let’s look at a standard deck of 52 playing cards. No replacement:  What is the probability of getting 2 kings assuming that the first one is not replaced?  (Note:  There are

MGMT496

SEE ATTCHMENT 250-300 WORDS ANSWERING THE FOLLOWING QUESTION This week explain who the potential audience for your e-portfolio will be.  How will you ensure that your e-portfolio is well received by the audience?  What acronyms do you use in your workplace that can cause confusion?  If you are including a

Government and Politics

Details attached.   The role of government in the economy is often debated by economists and businesspeople. 

HRM 6302 Unit V DBR

2 Employment Law HRM 6302 Unit V DB Reply 1 Posts to others should be a minimum of 150 words and use at least one supporting reference. You can use the text for this course as one of the reference sources. Reply to student post below Part I Under the Federal

Fin 6301 Unit VI PPP

2 Corporate Finance ECO 6301 Unit VI PowerPoint Presentation This assignment measures your mastery of ULOs 5.1, 5.2, and 5.3. The purpose of this PowerPoint Presentation is to analyze fundamental aspects of corporate finance management in multinational corporations. You will research a multinational corporation to focus on for the assignment,

gender

 In this summarize, Gallant writes mostly about gender and sex work. How might her ideas be expanded to consider gender in other areas of life?  

Real Estate Evaluation| Neighborhood Analysis

Identify and evaluate the neighborhood within which you live? Create a neighborhood profile using internet links and personal information that will provide some specific data. Draw some inference from this evaluation. Be sure to understand the term neighborhood and what makes this neighborhood different. Is it close to jobs? How

week 3 dicussion Organizational Behavior

 What are the factors that influence our perception? What is the link between perception and decision making? How do individual differences and organizational constraints influence decision making? 

FIN 6301 Unit V DB R1

2 Corporate Finance ECO 6301 Unit V DB Reply 1 • Your response post to class classmate should be at least 150 words in length. • Your response post should include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or

FIN 6301 Unit V DB R2

2 Corporate Finance ECO 6301 Unit V DB Reply 2 • Your response post to class classmate should be at least 150 words in length. • Your response post should include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or

BUSINESS (NO PLAGARISM A+ WORK, ON TIME)

discussion and assignment ASSIGNMENT Brand Extension Assignment For this assignment, you are asked to choose an  existing brand and create a  brand extension for that brand. This is not connected to your final paper topic, so you can use any brand, including your final paper topic for this deliverable. Your goal is

Cash Budget

See attached Please complete Excel template provided The goal of this assignment is to demonstrate the process of construction and utilization of a cash budget for a company. The assignment is closely related to Course Objectives #02. For this assignment we consider the monthly cash budget for six months (January

Final Project: Present a Business Plan

   Final Project: Present a Business Plan WHO: You are the entrepreneur, and your job is to present a business plan for your entrepreneurial venture (I was thinking of a truck parking stop).