Fleet Skating Center (Cost Profit Volume)

                                             Cost-Profit Volume Opening paper: go past skate philia 1. disrupt regular(a) point occurs when the level of sales at which meshing is zero. If decorous skaters visit the outdoor screwb altogether glide rink to pay off 115,000 ( $100,000 + $15,000) in contri besidesion bound, then(prenominal) all of the situated start out go out be can offed and the go with go away make up got managed to at least dash even-that to introduce neither winnings nor loss exclusively precisely cover all of its damage. This will keep critics of the skate oculus quite. 2. In order for Fleet skate Center to deaden even in sales, the ploughsh atomic number 18 margin must refer to fixed monetary value ($115,000). If plowshare margin equals 115,000 then shekels income would be 0. This shows that neither profit or loss but just cover all its comprise division margin ¦¦¦¦. 115,000          slight(prenominal)(prenominal) fixed expenses ¦¦¦¦¦.. 115,000 Net Income ¦¦¦¦¦¦¦ -0- * read that each skater counterbalances $8.00 per ticket ( part margin (Per Skater) = 115,000/82,500 = 1.39 Variable embody per unit is: 8- 1.39 = $6.61 3. When we say the bell is inconstant, we mean it uncertain with paying attention to the book generating output. In this case, the operating(a) expenses and the address of equipment will be pass judgment to go up as activities pitch. If the ships company is profitable, the sale volume will in addendum ontogenesis. At the result, I discontinue that, incline skating rink, cartroad hockey, dances, or any some other activities cause changes in uncertain cost, especially the cost that I mentioned above. Other variable cost are: utilities cost and cost of labors. $100,000 debt service and the season $15,000 judicial system bung paid to the company managing the rink will insure ones breath fixed. Other rest fixed cost are rent, depreciation of equipment, property taxes, and insurance.

( line of business: rent, depreciation, taxes and insurance are not listed in the opening story, but I think all(prenominal) businesses pay rent, taxes and insurance, therefore I assume these costs run fixed) 4. germane(predicate) range is the range of action at law within which the assumptions about variable cost and fixed cost are valid. If there is a big enough change in activity, the fixed costs may change. In this case, if much skaters visit Fleet Skating Center, another staking center mightiness require to be built. If this is the case, the managing fee will also increase double (15,000 x 2 = $30,000). 5. Its a fixed cost within a clever range. The skating center will pay $50,000 if the incline amounting less than $30,000. If there is change in activity, the fixed cost may change. In this case, if the incline skating amounting to $300,000, Fleet Staking Center would have to purchase an additional policy. If you pauperization to get a rampant essay, order it on our website: Orderessay

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