Class Notes (839,146)
United States (325,795)
BUS 202 (26)
Nick Ross (26)
Lecture 15

# BUS 202 Lecture 15: March 3rd Premium

8 Pages
42 Views

Department
Course Code
BUS 202
Professor
Nick Ross

This preview shows pages 1,2 and half of page 3. Sign up to view the full 8 pages of the document.
Description
March 3rd Friday, March 3, 2017 9:16 AM --- Total Per unit Sales 100k 250 Var exp 60k 150 • Cm 40k 100 Fixed 35k N.I. 5k • Q =100,000/250 = 400 • P = \$250 • V = 150 • F = 5,000 • Q break even f/p-v • 35K/250-150 = 350 ○ PROFIT = \$0 • Target level of profit: ○ How many units do we need to sell to achieve some profit level ○ How many units do you need to sell to buy your new car worth \$30,000 ○ Pie = p*q - v*q -f ○ 30,000 = 250*q -150*q-35,000 ○ 65,000=100q ○ Q= 650 ○ Formual: § Q = pie +f / P-v § Rev = pie + f/ cmr • Cost structure: ---- Bogside: Sterling Sales 100,0000 100,000 Var exp 60,000 30,0000 ○ Cm 40,000 70,000 F 30,000 60,000 NI 10,000 10,000 ○ Cmr March 3rd Friday, March 3, 2017 9:16 AM --- Total Per unit Sales 100k 250 Var exp 60k 150 • Cm 40k 100 Fixed 35k N.I. 5k • Q =100,000/250 = 400 • P = \$250 • V = 150 • F = 5,000 • Q break even f/p-v • 35K/250-150 = 350 ○ PROFIT = \$0 • Target level of profit: ○ How many units do we need to sell to achieve some profit level ○ How many units do you need to sell to buy your new car worth \$30,000 ○ Pie = p*q - v*q -f ○ 30,000 = 250*q -150*q-35,000 ○ 65,000=100q ○ Q= 650 ○ Formual: § Q = pie +f / P-v § Rev = pie + f/ cmr • Cost structure: ---- Bogside: Sterling Sales 100,0000 100,000 Var exp 60,000 30,0000 ○ Cm 40,000 70,000 F 30,000 60,000 NI 10,000 10,000 ○ Cmr Var exp 60,000 30,0000 ○ Cm 40,000 70,000 F 30,000 60,000 NI 10,000 10,000 ○ Cmr § Bogside: □ 40/100 = 0.4 § Sterling: □ 70/100=0.7 ○ Variable expense ratio: § Bogside: □ 60/100=0.6 § Sterling: □ 30/100=0.3 ○ Sales increase 10%; ---- Bogside: Sterling Sales 110,0000 110,000 Var exp 66,000 33,0000 § Cm 44,000 77,000 F 30,000 60,000 NI 14,000 17,000 ○ Sales decrease 20% from original: ---- Bogside: Sterling Sales 80,0000 80,000 Var exp 48,000 24,0000 § Cm 32,000 56,000 F 30,000 60,000 NI 2,000 -4,000 ○ What would make you decide Sterling or Bogside § Appetite to risk § Industry □ Affects variability ○ Segmented income statements: § How do we analyze a company with multiple segments § Traceable fixed cost □ A cost attached to a single line of business § Common fixed cost: □ A cost attached t multiple lines of business Var exp 60,000 30,0000 ○ Cm 40,000 70,000 F 30,000 60,000 NI 10,000 10,000 ○ Cmr § Bogside: □ 40/100 = 0.4 § Sterling: □ 70/100=0.7 ○ Variable expense ratio: § Bogside: □ 60/100=0.6 § Sterling: □ 30/100=0.3 ○ Sales increase 10%; ---- Bogside: Sterling Sales 110,0000 110,000 Var exp 66,000 33,0000 § Cm 44,000 77,000 F 30,000 60,000 NI 14,000 17,000 ○ Sales decrease 20% from original: ---- Bogside: Sterling Sales 80,0000 80,000 Var exp 48,000 24,0000 § Cm 32,000 56,000 F 30,000 60,000 NI 2,000 -4,000 ○ What would make you decide Sterling or Bogside § Appetite to risk § Industry □ Affects variability ○ Segmented income statements: § How do we analyze a company with multiple segments § Traceable fixed cost □ A cost attached to a single line of business § Common fixed cost: □ A cost attached t multiple lines of business ○ Segmented income statements: § How do we analyze a company with multiple segments
More Less

Only pages 1,2 and half of page 3 are available for preview. Some parts have been intentionally blurred.

Unlock Document

Unlock to view full version

Unlock Document
Me

OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Join to view

OR

By registering, I agree to the Terms and Privacy Policies
Just a few more details

So we can recommend you notes for your school.