• Research Paper on:
    Accounting Questions; Breakeven Analysis

    Number of Pages: 6

     

    Summary of the research paper:

    This 6 page paper shows the student how to answers the questions of income and break even points in the fictitious management accounting case of Harry Huffnpuff Glassblowing. The paper demonstrates clearly how to put together an income statement and the way in which contribution can be assessed and then used to identify the breakeven point. The bibliography cites 3 sources.

    Name of Research Paper File: TS14_TEbreakcase1.rtf

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    Unformatted Sample Text from the Research Paper:
    We are given some costs and not a full break down of costs, nor are we given a breakdown income. We need to calculate these from the income and cost  figures. The income figure is the easiest, so we will start here. We are told that Harry Huffnpuff is averaging 5 bundles a week, that he works 40 weeks  a year on the glassblowing and charges $680 a bundle. From this we can calculate the projected income. Revenue per bundle (a) 680 Revenue per week (b) (a x  5) 3,400 Revenue per year (b x 40) 136,000 This gives us the revenue. The next stage is to look at the costs.  We need to break these down into the cost of goods sold and other costs. The cost of goods sold are the materials that are used for the products, the  indirect costs are the supporting costs, such as packaging, wages etc. If we look at the costs we are given a level for the ten weeks when Harry is not  at the factory, and another amount for the weeks when he is, we can divide the cost of when he is away by the period he is away to get  the total overhead cost. This works out at 605. To calculate the direct costs of materials etc we can take the cost per week when he is working and deduct  this overhead cost. 10 week overhead when no work being done (a) 6050 Overhead per week (b) (a/10) 605 Costs for a 5 bundle week (c) 2,800 Material  costs (d) (c - b) 2,195 Material costs for the year (b x 40) 87,800 It may be tempting to look at the 

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