Set Costs, Varying Costs, and Break-Even Level

Project: Fixed Costs, Variable Costs, and Break-Even Point

Exercise twelve. 1

Through the sixth month of the fiscal year, the program director from the Westchester Home-Delivered Meals (WHDM) program determines to again recompute set costs, changing costs, plus the BEP making use of the high–low approach. Here are the quantity of meals offered and the total costs of the program for every single of the first six months:

MonthMealsServed Total Costs

July3, 500$20, 500.

August4, 000$22, six hundred.

September4, 200$23, 350.

October4, 600$24, 500.

November4, 700$25, 000.

December4, 900$26, 1000.

Recompute fixed costs, variable costs, and the BEP. Precisely what are the changing costs? Exactly what are the set costs? How many foods will the WHDM program ought to provide during the fiscal yr to reach the BEP? Just how much profit does the program gain if it completes its forty five, 000-meal contract with the City of Westchester?

Foods: High-Low=

Cost: High-Low=

The variable price per meals:

The variable cost for the reduced month:

Fixed cost:

(Monthly BEP)

(Fiscal-year BEP)

WHDM program revenue analysis

= meal contract

Break Even Point (BEP) sama dengan

one particular, 008 Revenue

1, 008 Meals by

Total Cost Per meal

Total Profit =

Exercise 10. 2

It is two years because the New Water Community Authorities (NRCC) started its publication dealing with state and community funding opportunities for human service agencies. The current range of subscribers towards the newsletter can be 525. During the second season, the NRCC hired a brand new part-time publication coordinator (social work student). The NRCC has increased the income of the part-time newsletter coordinator to $6, 000 per year and has also hired one other part-time pupil as an assistant pertaining to ten hours a week. The assistant is to be paid $75 per week or perhaps $3, nine hundred per year. Collectively the newsletter coordinator plus the part-time associate believe they will handle about 650 e-newsletter subscribers. Over and above this number, the e-newsletter program will demand still...