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  • Case Study (Cycle 31)

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    Flavia Fernanda Vásquez Paliza
    9 views2 pages
    The document discusses calculations for determining: 1) Total contribution by adding fixed costs and target profit. 2) Units required by dividing fixed costs and target profit by unit contribution. 3) Target price by dividing fixed costs, direct costs per unit, and target profit by quantity. 4) Persons required by dividing fixed costs or fixed costs plus target profit by price per person minus unit variable cost.

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    Case Study(cycle 31)

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    The document discusses calculations for determining: 1) Total contribution by adding fixed costs and target profit. 2) Units required by dividing fixed costs and target profit by unit contribution. 3) Target price by dividing fixed costs, direct costs per unit, and target profit by quantity. 4) Persons required by dividing fixed costs or fixed costs plus target profit by price per person minus unit variable cost.

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    © All Rights Reserved
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    9 views2 pages

    Case Study (Cycle 31)

    Uploaded by

    Flavia Fernanda Vásquez Paliza
    The document discusses calculations for determining: 1) Total contribution by adding fixed costs and target profit. 2) Units required by dividing fixed costs and target profit by unit contribution. 3) Target price by dividing fixed costs, direct costs per unit, and target profit by quantity. 4) Persons required by dividing fixed costs or fixed costs plus target profit by price per person minus unit variable cost.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    5.

    Total contribution=fixed costs+target profit

    Total contribution=10.000 + 35.000


    Total contribution= 45,00

    6.
    Units required= Fixed costs+Target profit/Unit contribution

    Total contribution= 50.000+200.00


    —------------------
    500
    Total contribution= 500

    7.
    Target price=Fixed costs + (Direct cost per watch×Quantity of watches)+Target profit.
    —----------------------------------------------------------------------------------------------
    Quantity of watches

    Target price= 3500+(120 x 60) +2500


    —----------------------------
    60
    Target price= 220
    8.

    a)
    Pearsons required= Fixe cost/ price per person - unit variable cost

    persons required= 1200


    —---
    500-420
    500-420=80
    1200/80=15

    Persons required=15

    b)
    Pearsons required= fixe cost+ target profit/ price per person- unit variable cost
    Pearsons required= 12000+20000
    —----------------
    500-420
    12000+20000=32000
    500-420=80
    Pearsons required=32000
    —-------- = 400
    80

    Pearsons required= 400

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