Bill Frensh 2 Ansuer Essay

1079 words - 5 pages

* Ele assumiu que há apenas um ponto de equilíbrio para a empresa ( pela média dos 3 produtos)

* Ele também assumiu que o mix de vendas permanecerá constante

* Ele também assumiu que o mix de vendas permanecerá constante . A receita total e as despesas totais se comportam de forma linear ao longo do intervalo relevante

* Uma vez que a capacidade está sendo expandida para aumentar a produção de Produto C , pode -se supor que este aumento deverá ser atribuído a este produto. Produção de Produto A está a ser reduzida, mas o seu nível de custos fixos tem sido assumido ...view middle of the document...

  * $9,120,000

      b. What level of operations must be achieved to meet the union demands, ignoring bonus dividends?

  * FC + Union Demands/CMR
  * 1st: Union Demands = (6,750,000 x10%) = 675,000
  * 2,970,000 + 675,000/.375
  * $9,720,000

      c. What level of operations must be achieved to meet both dividends and expected union requirements?

  * FC + Target Dividend + Union Demands/CMR
  * 2,970,000 + 450,000 + 675,000/.375
  * $10,920,000

  3. Can the break-even analysis help the company decide whether to alter the existing product emphasis? What can the company afford to invest for additional “C” capacity?
The break-even analysis can help the company decide whether to alter the existing product emphasis because it will allow the company to identify which product generates the highest...


French, a staff accountant who was hired six months was well aware of his capabilities and took advantage of every opportunity that arose to try to educate those around him. Then, he was requested permission to make a presentation of some break-even data.

The Duo-Products Corporation had not been making use of this type of analysis in its planning or review procedures. What French had done was to determine the level at which the company must operate in order to break even.

He uses information given in past accounting records to construct his break even analysis without take into consideration with other department about the company operation.

As per Bill French:
“The company must be able at least to sell a sufficient volume of goods so that it will cover all the variable costs of producing and selling the goods. Further, it will not make a profit unless it covers the fixed cost as well. The level of operation at which total costs are just covered is the break-even volume. This should be the lower limit in all our planning.”

Question 1

What are the assumptions implicit in Bill French’s determination of his company’s break-even point?

  1. There was only one break-even point for the firm whether product by product or in total (he taking average of 3 products). Refer to the table below.

| A | B | C | Aggregate |
Sales at full capacity (units) | | | | 2,000,000 |
Sales Volume (units) | 600 000 | 400 000 | 500 000 | 1 500 000 |
Unit Sales Price | $10 | $9 | $2.4 | $7.2 |
| | | | |
Sales revenue |...

Other Essays Like Bill Frensh 2 Ansuer

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages research (Thomassen 2). During his time, religion played a main role in society, making people believe they were supreme rulers over all other living beings on the earth as stated in the bible. Because of this fact, humans and animals were not linked and research was conducted only to learn more about non-human species. It was not until 1859 when Charles Darwin came up with his theory of evolution that human and animal body systems were connected

Education And The Evolving Job Market

2363 words - 10 pages academic abilities (Anderson, 2007). According to Gregory and Chapman (2007), through differentiation educators are able to “give all students an opportunity to learn to their full potential.” The authors furthermore state instructors who support this philosophy have several key beliefs about the learners they teach. These include: (1) every student has his own areas strength and weakness, (2) each student has the abilities and capacities to

Young And Relentless

1737 words - 7 pages There are numerous influences that can be responsible of teenager’s behaviors and attitude as they develop. One factor that is important to these behaviors is parental figures being over involved or uninvolved in their children’s lives. Many of these effects include illegal substance abuse, rising sexual activity, underage alcohol consumption, and tobacco use. Studies show parental participation plays a key role in the characteristics developed

The Natural Law Theory

1231 words - 5 pages Obeying by the natural law theory is the only true and moral way to live life; especially a life lived in God’s image. God’s presence is a guiding factor to obtaining a moral and virtuous life, which can only be obtained by following the natural law theory. God created a set of laws as a supreme guide for humans to live life, like any law these laws were created to ensure wellbeing for everyone. The laws he created are the civil law, the natural

Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages ). Legislative history signing statements are executive interpretations of ambiguous legislation (Bradley & Posner, 2006). The Constitution very specifically outlines the process of a bill being passed up to the executive level, but the issue of presidential signing statements is not explicitly discussed, therefore it becomes a controversial grey area; specifically when a President uses a signing statement to express partial support and intent to enforce a

Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

The Pathway To Psychosis

1415 words - 6 pages “How all occasions do inform against me” is a line from act IIII, scene IIII of William Shakespeare’s Hamlet. This line, spoken by Hamlet, expresses his emotional state as he is currently overwhelmed by the death of his father, the king of Denmark, and the situation surrounding it. After Hamlet learns of his father’s death he finds out that his mother has married Claudius, Hamlet’s uncle. On top of all of that, Hamlet soon after

Rated “M” For “More Censorship Not Needed”

1241 words - 5 pages Since the moment video games became a commercial success there have been people who have pushed for unfair amounts of censorship to be placed upon the content of the games and its availability to children. These groups push for increased regulations on content but there is already an appointed group to handle this issue, the ESRB. Even though there has been an increase in mature content in the video game industry, increased censorship is not

Four Components Of A Legally Astute Social Media Marketing Manager

1914 words - 8 pages With the advances in technology constantly changing companies have to find better ways to market their products to consumers. The explosion of Facebook has given companies a way to market products to consumers. Examine how a legally astute manager can use social media to his advantage. Review different forms of dispute resolution and determine which one works the best. What is the best course of action, the government can use to

Obama's Values

1217 words - 5 pages As individuals, we don’t tend to take action unless it’s for self-interest; however, in Dreams from My Father, Obama spends three years, after college, as a community organizer in Chicago. Obama goes through tribulations, disappointments, and even complete failures organizing meaningful events, decisive meetings, and humble gatherings but he keeps working toward achieving any possible change in the community. Even though results give him every

Related Papers

The Separation Of Capital Ownership And Control

1577 words - 7 pages The argument of whether the separation of capital ownership and control is an efficient form of organization has constantly been a controversial issue. The criticism whether the controllers’ act is in the best interest of the owners’ wills never end as long as hired managers operate management. As the number of public companies has been increasing over the course of this century, meanwhile the American style of contact based corporation has

The Versatility And Flexibility Of Oled's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

Living In A Cashless Society Essay

1637 words - 7 pages Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question