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Instructions for Fixed Costs College Essay Examples

Title: maximize profits

Total Pages: 2 Words: 847 Sources: 2 Citation Style: APA Document Type: Essay

Essay Instructions: Please answer the following 2 questions. Each question should have 1 source and 300 words each.

1. Businesses often decide between using automation and labor in production. An automotive environment may have high fixed costs and low variable costs, and an industry that utilizes manual labor for production will have low fixed costs and high variable costs. How would you describe the balance between the costs of automation, or fixed costs, and the costs of labor, or variable costs? How has technology changed the balance between automation and labor? What type of industry benefits the most from technological innovation?

2. Choose an organization that has a high fixed cost and low variable cost balance to run its operations. Discuss the balance of fixed and variable costs for the organization. How can the organization use technology to change this balance for an advantage?
Customer is requesting that (MSwriter) completes this order.

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Essay Instructions: I need a paper on managerial economics and quantitaive analysis:

I have uploaded the case study that the paper is based on and identified the questions that need to be answered below:

The basic question in this case is whether Airbus and Boeing should work together to develop a new VLCT airframe or should each company seek to develop its own version of the equipment. For the purposes of this analysis, you are to assume the Demand and AVC equations provided below are correct and reflect the additional analysis that representatives of teh two companies were able to estimate within the context of the size of the market opportunity outlined on page 3 of the case. Be advised that, after further review, the Airbus analysts concluded teh numnber of new aircraft needed during the next twenty years would be within 30% of the upper level outlined by Boeing in that context.

Part 1:
Given the demand and cost data you will have available (see information below) briefly describe th process you would use to determine optimum output an dprice lelvels in the devleopment and production of the new VLCT equipment. The purpose of this section is not to perform any analytical elvatuion, but rather provide a verbal description of the process you believe to be appropriate.

Part 2:
Give the following:

Airbus: Demand = P= 182.868-0.0003Q
Boeing: Demand = P= 198.6592-0.00013Q
Airbus TVC Curve = TVC=104.8822Q - 0.001Qsquared
Boeing TVC Curve = TVC = 25.8678Q-0.00023Qsquared + 0.4Qcubed

In addition, the joint group analysis determined the market would bear a price per plane somewhere within the following parameters:

Price per plane = 125 million at .25 probability
price per plane = 175 million at .25 probability
price per plane = 225 million at .5 proability

1. First estimate the price per plane using the estimated prices and proabilities given

2. Determin the optimum prices and outputs for both Airbus and Boeing if they decide to proceed individually without collaborating in the development of the VLCT. Use the Demand and AVC equations outlined abive in this analysis. Determine teh profitability of this approach for each of teh companies if teh Fixed Costs are $500 million and $700 million for Airbus and Boeing respectively.

3. Now analyze the potential for a collaborative approach for Airbus and Boeing. Assume thre is a 50% probabiity the each of the companies estimates is accurate in the Demand and Cost equations provided above. (multiply both the demand and cost curves for each of the entries by 0.5, add them together. Then use that result to determine optimum price/quantity levels if they collaborate). Also determine profitability assuming tht the joint Fixed Cost is $600 million.

4. Finally, summarize the results of your analysis and make a recommendations about what you consider the most appropriate process for Airbus and Boeing to use in the development of the VLCT equipment. It is recommended that you use an Excel spreadsheet to summarize the results. It might also be useful to construct an Excel section for the quadratic formula that will be required for the analysis.

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Title: Activity Based Costing

Total Pages: 5 Words: 1424 Works Cited: 0 Citation Style: APA Document Type: Essay

Essay Instructions: Common costs refer to the cost of resources used by multiple divisions, departments, or another type of grouping. These types of overhead costs are not only incurred within a profit center, but in many other parts of the organization. One example is overhead or common fixed costs for distribution and client support. We're using the latter for some hands-on experience in allocating common costs and analyzing the implications for T&M. Information follows below.
Towels & More (T&M) is a small family company that produces and sells towels. T&M sells the towels to three types of stores: major retailers, specialty retailers and gift shops. The company is doing well and the CEO wants to expand the business. The contribution margin ratio is the highest for the small gift shops, so the CEO feels that those are the type of retail outlets to pursue.
Below find T&M?s income statement for last year.
Towels and More
For the year ended 12-31-20XX

Sales $600,000
Variable Production Cost 180,000
Contribution Margin $420.000
Fixed Cost:
Production Overhead $120,000
Selling and Distribution Cost 240,000 $360,000
Net Operating Cost 60,000

Customer support & distribution costs are pretty high at T&M. The total amount was $240,000 last year. The marketing manager has recently been to a seminar and learned about applying ABC to analyze customer and distribution costs. He suggests that the company analyze overhead costs associated with supporting different types of customers before proceeding with an expansion. The marketing manager knows that the small shops require a lot of attention and is somewhat dubious about the CEO's proposed strategy. The CEO accepts the suggestion and you are brought in as a consultant to prepare the analysis. The table below provides some information that may be pertinent for the analysis.
Department Stores Specialty Shops Gift Shops
Description Customer Support & Distribution Costs Activity Level Activity Level Activity Level
Sales (units) 10,000 5,000 5,000
Revenues $200,000 $100,000 $300,000
Contribution margin ratio 50% 80% 80%
No. of customers 5 45 250
Total costs/No. of orders places $40,000 10 90 900
Total costs/No. of sales calls $80,000 5 195 800
Total costs/No. of shipments $120,000 20 480 1,000

Note that the contribution margin ratio varies due to different quality of towels sold to the stores.
? Calculate the customer support and distribution costs associated with the three types of customers.
o Use a simple strategy first and allocate the costs based on revenues.
o Recalculate the allocations using activity based costing (ABC) based on the information in the table above.
? Determine contribution margin less customer support and distribution costs for both approaches above.
? Which type of customer should the company support and why? Refer to your analysis in your response.
? What are the characteristics of companies that may benefit from an ABC allocation system?
It is important to answer the questions as posed. The discussion should be 5 pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheets when computations are involved.

Kaplan, R. S. (1992). In defense of activity-based cost management. Management Accounting, 74(5), 58-58.
Stratton, W. O., Desroches, D., Lawson, R. A., & Hatch, T. (2009). Activity-based costing: Is it still relevant? Management Accounting Quarterly, 10(3), 31-40.

Read one of the following:
Martin, J. R. (n.d.) Management Accounting: Concepts, Techniques, and Controversial Issues - Chapter 7: Activity Based Costing. Retrieved from
Walther, l. (2012). Chapter Twenty. Process Costing and Activity-Based Costing. Retrieved (including video lecture) from Concentrate on the topic of ABC.

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Total Pages: 6 Words: 2192 Bibliography: 3 Citation Style: APA Document Type: Research Paper

Essay Instructions: WE WILL PAY $75.00 for this one!!!

Your answer to each essay question should be complete and between 200 and 300 words.

1. Agency problems lead to the possibility of agency costs. Agency costs are the dollar amount of value lost in market value of the organization, or in the health status of the patient, because of agency problems. How can agency issues be avoided (or minimized) in the health care setting to maintain revenue, but more importantly, protect the health status of patients?

2. The basis principles of accounting: going concern, conservatism, the recording of information in monetary terms, the accrual principle, and full disclosure are vital to the success of an organization. Briefly describe each of these concepts and explain its importance in accounting.

3. Each financial statement has a specific role and function. Explain the role and function of: the balance sheet, the income statement, the statement of cash flows, and the operating statement.

4. At any point in time, a security or any asset is only worth what someone is willing to pay for that security or asset. However, models result in a precise value or price. This appears to be a direct contradiction. Explain, in detail, this issue.

5. Distinguish between fixed, variable, and step-fixed costs. Explain the difficulty of identifying some costs as either fixed or variable.

6. Least squares regression and the high-low method are used to estimate fixed and variable costs. Explain the advantages and disadvantages of both methods. Which method is the best method and why?

7. Distinguish between fixed, flexible, zero-based, incremental, top-down, and bottom-up budgeting methods. What are the advantages and disadvantages of each method? Which method is the best method and why?

8. Explain in detail why it is difficult for investors to consistently "beat the market" and earn returns in excess of that required given the level of risk taken.

9. How can the security market line be used to estimate required returns for securities? Explain your rationale in detail.

10. Explain the details of establishing a cash flow schedule. Be sure to define all terms used when establishing such a schedule.

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