Cost-Volume Analysis
Enviado por Andiwee • 8 de Junio de 2014 • Tareas • 233 Palabras (1 Páginas) • 252 Visitas
Store 24: Cost-Volume Analysis
1) The type of customers might attract to money order service are those who need money orders urgently. These customers will find money-order service helpful since most banks are closed at nights. They may be typical convenience customers, because they sometime don’t know they need until they know it is being offered.
2) selling cost – variable processing fee – variable labor fee* = contribution margin
0.79-0.06-0.15=0.58
Variable labor fee: 60x60=3600 seconds in 1 hr
3600/90=60 orders in hr
9/60= 0.15 cent/order
3) q=quantity of money orders to breakeven in a month
equation: 0.79q-0.06q-0.15q-30=0
0.58q=30
q=52
CM method: 30/0.58=52
4) 0.79q-0.06q-0.15q-30=140
q=293
5) Processing 1 money order is equivalent of processing 3 products. Thus offering money order increases the wait line. Hence, non-money order customers will be unhappy.
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