Assume that a radiologist group practice has the following cost structure:

a. What is the group’s breakeven point in volume?

b. Complete the following table. (Hint: total costs= fixed costs + (variable cost per procedure x procedures)

c. Sketch out a breakeven graph depicting the BE point. (Hint: use Excel to produce the graph. When done, copy/paste the graph on the space provided below).

■Machine A

–Initial Cost = $150,000

–Pre-tax operating cost = $65,000

Expected life is 8 years

■Machine B

–Initial Cost = $100,000

–Pre-tax operating cost = $57,500

–Expected life is 6 years

The machine chosen will be replaced indefinitely and neither machine will have a differential impact on revenue. No change in NWC is required.

The required return is 10%, the applicable CCA rate is 20% and the tax rate is 40%.

Which machine should you buy?

1)

Annual sales (=demand), D = 4000 sets

Order cost, S = $ 25

Holding cost, H = $ 5

Current order quantity, Q = D/2 = 4000/2 = 2000 sets

Optimal order quantity, EOQ = sqrt(2DS/H)

= sqrt(2*4000*25/5)

= 200 sets

Annual holding cost of current policy = H*Q/2

= 5*2000/2

= $ 5000

Annual holding cost of optimal policy = H*EOQ/2

= 5*200/2

= $ 500

Difference in holding costs = 5000 - 500

= $ 4,500

2) A distribution center operates for a major electronics company that fulfills orders that customers make from the website. (15 pts.)

Estimated annual demand: 16,936 laptops (50 weeks per year)

Cost: $840 per laptop

Lead Time: 5 weeks

Standard deviation of weekly demand: laptops

Standard deviation of lead time: 0.9 weeks

Holding cost per unit per year: 60% of item cost

Ordering cost: $37 per order

Desired service level: 98% (z=2.05)

***Calculate the reorder point and the safety stock? Note that you need to convert the annual demand to weekly demand based on 50 wks/yr.

Cost of common stock equity   Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$65.88. The firm just recently paid a dividend of ​$3.98. The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$3.04. After underpricing and flotation​ costs, the firm expects to net ​$61.93 per share on a new issue. a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, Nn​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, r Subscript s​, which should equal the cost of retained​ earnings, r Subscript r. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, r Subscript n.

The above data is the cost and price of the event of Annual Dinner . As a cost controller, using the data above briefly explain and analyze how the company can maximize the profit and minimize the cost using the below method?

a. Job Costing

b. Hybrid Costing

c. Process costing

d. Historical costing

e. Operating Costing

Assume the short run variable cost function for Japanese beer is VC=0.5q^0.67

If the fixed cost​ (F) is $1500 and the firm produces 600​units, determine the total cost of production​ (C), the variable cost of production​ (VC), the marginal cost of production​ (MC), the average fixed cost of production​ (AFC), and the average variable cost of production​ (AVC). What happens to these costs if the firm increases its output to 650?

Assuming the firm produces 600 units, the variable cost of production​ (VC) is

VC=???????. ​ (Enter your response rounded to two decimal​places.)

The total cost of production​ (C) is C=$????.?? ​(Enter your response rounded to two decimal​ places.)

The marginal cost of production​ (MC) is MC=​$?.?? ​(Enter your response rounded to two decimal​ places.)

The average fixed cost of production​ (AFC) is AFC=​$?.??   ​(Enter your response rounded to two decimal​ places.)

The average variable cost of production​ (AVC) is AVC=​$?.??​(Enter your response rounded to two decimal​ places.)

Now suppose the firm increases output to 750 units.

The variable cost of production​ (VC) is VC=​$???.?? ​(Enter your response rounded to two decimal​ places.)

The total cost of production​ (C) is C=​$????.?? ​(Enter your response rounded to two decimal​ places.)

The marginal cost of production​ (MC) is MC= $?.??  ​(Enter your response rounded to two decimal​ places.)

The average fixed cost of production​ (AFC) is AFC=​$?.??     ​(Enter your response rounded to two decimal​ places.)

The average variable cost of production​ (AVC) is AVC=​$?.??   ​(Enter your response rounded to two decimal​places.)

Cost of common stock equity   Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$49.39. The firm just recently paid a dividend of ​$3.99. The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$3.04. After underpricing and flotation​ costs, the firm expects to net ​$43.96 per share on a new issue. a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, Nn​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, r Subscript s​, which should equal the cost of retained​ earnings, r Subscript r. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, r Subscript n. a.  The average annual dividend growth rate over the past 5 years is?

1. Match with the proper definition

A. CFO

B. Fixed Cost

C. Indirect Cost

D. Management by exception

E. Non - Controllable Cost

F. Opportunity Cost

G. Sunk Cost

H. Supply Chain Management Systems

I. Value Chain

J. Variable Cost

_____The benefits forgone when one alternative is selected over another

_____Organize the activities between a company and its suppliers

_____A cost that does not change, in total, with changes in the level of business activity

_____investigating departures from the plan that are significant

_____ A cost that was incurred in the past

_____A cost that cannot be easily traced to a particular cost object

_____A cost that does not change on per unit basis with changes in the level of business activity

_____The senior executive responsible for accounting and financial operations

_____ A company internal operations and its relationships and interactions with suppliers and customers

_____ A cost that a manager cannot Influence

Cost of common stock equity   Ross Textiles wishes to measure its cost of common stock equity. The​ firm's stock is currently selling for ​$62.48. The firm just recently paid a dividend of ​$4.01. The firm has been increasing dividends regularly. Five years​ ago, the dividend was just ​$3.01. After underpricing and flotation​ costs, the firm expects to net ​$57.48 per share on a new issue. a.  Determine average annual dividend growth rate over the past 5 years. Using that growth​ rate, what dividend would you expect the company to pay next​ year? b. Determine the net​ proceeds, Nn​, that the firm will actually receive. c.  Using the​ constant-growth valuation​ model, determine the required return on the​ company's stock, r Subscript s​, which should equal the cost of retained​ earnings, r Subscript r. d.  Using the​ constant-growth valuation​ model, determine the cost of new common​ stock, r Subscript n.

Procurement cost analysis

-Describe the process of strategic/ tactical sourcing

-Explain how to approach cost analysis of specific category (i.e. supply chain function