The Budgeting Committee of Hardhat Limited Research Paper

The Budgeting Committee of Hardhat Limited - Research Paper Example Performing profitability analysis requires an understanding of selling prices and the behavior of activity cost drivers. (Activity cost driver is often referred to as cost driver when the context is clear that we are discussing activity, rather than structural or organizational, cost drivers.) Profitability analysis is widely used in the economic evaluation of existing or proposed products or services. Typically, it is performed before decisions are finalized in the operating budget for a future period. This report shows the analysis done to find out the changes in the profit when the costs increase and how much of sales is requires to achieve the targeted profits and also the selling price that is required to achieve the targeted profit. For the CVP analysis it is assumed that the total costs can be segregated into fixed and variable costs, the fixed cost remains constant during the relevant period, variable cost per unit remains constant during the period of consideration and the selling price will also be constant irrespective of the volume sold during the year 2007/ 2008. It is also assumed that the production and sales volume will remain constant. With these assumptions as the background, the calculation of the effect of profit is calculated when there is the change in selling price, sales volume and cost of resources are made and submitted.   Ã‚  It is mentioned that the expected sales, variable costs an fixed costs will change in the year of 2007/ 2008. The reason for the increase in fixed cost is the increase in the selling expenses due to expected increase in sales volume and the increase in administration costs are due to an expected increase in salaries. Hence, we have to find out, the relative sales volume to earn the target profits and the new selling price when the sales volume increases by 10% and 20%. These analyses help to understand the triangular relationship between the costs, the volume of sales and profits. Understanding of this relationship helps to make managerial decisions and to devise marketing strategies. From the information provided the variable cost and the fixed costs are segregated to calculate the contribution. Contribution per unit is the difference between the selling price and the variable cost per unit. The contribution is not profit. Contribution means the amount that is obtained by the sale of each unit towards a recovery of the fixed costs.

Current Affair Assignment Example | Topics and Well Written Essays - 1000 words

Current Affair - Assignment Example In a bid to stop spread of Ebola, people have to avoid making physical contacts since Ebola is transmitted through body fluids such as sweat, saliva, blood, and tears among others. In a community that regards physical contact as the best way to express affection and show friendship, Ebola has claimed the lives of so many people. It is quite hard to shun away from the accustomed practices but nevertheless, this is the only way to prevent Ebola spread. It is extremely hard for family members and friends to avoid making physical contact regardless of situations requiring comfort. This is what makes it so hard to stop Ebola spread once it hits a certain area. Despite the view of many in different parts of the world, Ebola spread and containment is heavily dependent on the status of a country or area. Ebola may arguably be considered to thrive the best in areas of low development and therefore it is in order to say that Ebola spread is highly dependent on social inequality and economic imbalance. Looking at the recent sprout of Ebola, it is evident that developing countries such as some in Africa are at higher risks of experiencing such deadly diseases. To make matters worse, these are the same countries without the required techniques and knowledge of how to combat such horrific infestation. However, this is not to say that it would have better if the cases occurred in developed countries but instead it is a call for more to be done by the developed countries to help developing countries in times of crisis. For instance the levels at which media in developed countries reacted to the recent Ebola pandemic in Liberia is not satisfactory. It was not until Ebola claimed the first life in the American soil that American media reacted. This is despite the fact that cases of Ebola had already sprouted in Africa several months