'Variable Costs\r'

' appellation: Fixed be Dora McKinney Hsm/260 Week 4 Instructor: Greg O’Donnell Fixed Costs, inconstant Costs, and Break-Even Point sour 10. 1 month Meals Served Total Costs July 3,500 $20,500Low August 4,000 22,600 kinsfolk 4,200 23,350 October 4,600 24,500 November 4,700 25,000 December 4,900 26,000High In traffic with flavor 1-The difference in receipts multitude in the midst of elevated- minuscule details is (4,900-3,500) 1,400 repasts. In dealing with yard 2-The difference in courts mingled with the high- pitiable period is ($26,000-20,500) $5,500. In dealing with tonicity 3-The protean appeal is instantly computed.The cost difference $5,500 is divided by the service volume of 1,400. The variable cost per building block of service is $3. 93. In dealing with footfall 4-Total variable costs are now computed. In the low time period the number of meals provided is 3,500. The service volume is therefore multiplied by the cost per social unit of $3. 93. The contribute variable cost for the low month is $13,755. The same is make to take care the heart and soul variable costs for the high month 4,900 ? $3. 93 = $19,257. In dealing with step 5-Total fix costs for the low period are now computed. The total program cost for the low month is $20,500.If the variable costs ($13,755) are subtracted from the total costs ($20,500) the remaining total is the fixed cost at $6,745. If the same is done for the high month ($26,000 †19,257) the fixed cost is $6,743. In dealing with step 6-The break-even destine is ready to be inputed using the BEP practice and steps 1-5. The contracted service hurt with the City of Westchester for 45,000 meals is $5. 77. The variable costs per meal is $3. 93 per meal, but will bring in $5. 77. The difference between the variable cost per meal and the revenue per meal is 5. 7X = 6745 + 3. 93X is $1. 84 per meal. This leaves 3,666 which is the monthly BEP. Then 3,666 ? 12 = 43,992 is the financial yea r BEP. The WHDM needs to provide 43,992 meals during the fiscal year to reach the BEP. The difference between the contracted meals 45,000 and the BEP 43,992 is 1,008. The potential profit is 1,008 meals ? $1. 84 a total profit of $1,855. Exercise 10. 2 The newsletter yearly requital coordinator is $6,000 and the assistant total is $3,900 for both of $9,900 a fixed cost. The unit cost of preparing, mental picture and the mailing is $4. 0 for the period of six-spot bimonthly issues is $4. 50 this is a variable cost. This newsletter is now $20 per annual yearly subscription. This information plus the BEP code is used to add and complete the BEP. 20X = 9,900 + 4. 50X 15. 50X = 9,900 X = 639 In dealing with the BEP, I bank it will be 639. The new BEP is a acceptable solution because joined with the newsletter coordinator and with the corporation of handling up to the substance of 650 subscriber’s. There also is an amount of 11 subscribers that is able to subtracting the BEP Dora mckinney [email protected] com\r\n'