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Review the Cafe Xaragua case and the following questions and prepare your response in an excel document. Please include a cover page with your name, your instructor's name and the name and number of the course. Your response to each of the required MUST be included on a separate worksheet tab and each tab should be named Q1; Q2; and so on. Anything beyond the five questions or not named as such will not be marked.
1. From a qualitative viewpoint, discuss the pros and cons of Robert Lehnert and his partners launching this venture.
2. Identify all costs associated with this venture. Categorize these costs as fixed, variable and one time investment.
3. How long could the Cafe survive without any customers?
4. Calculate the contribution margin for each product sold. Calculate the weighted average contribution margin per customer. How many customer visits will the Café need in order to break even assuming a full time manager is hired? Prepare calculation of net profit before tax using the best and worst level of volume given in the case.
5. As Lehnert, would you launch the venture? Why or why not? Discuss both quantitatively and qualitatively
Evaluate the recommendation of controller Morgan and evaluate the recommendation of the Vice president
Roehler Industrial has estimated that production for the next five quarters will be: Make quarterly direct materials purchases budgets for Roehler Industrial for 2011.
What is the amount of direct materials cost incurred by LP Production:
Examine and discuss the characteristics of NPV and the role that this method plays in capital investment decision making. In addition, discuss the advantages of using this method instead of the other evaluation methods examined this week.
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Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students.
Determine the variances and the total direct material cost variance, Total direct labor cost variance
Many areas should be considered when developing the healthcare operations budget. To accurately assess revenue and cost considerations, strategic forecasting should be performed. Each kind of healthcare business (i.e., hospital, health plan, facil..
Laguna Corporation has provided the following data concerning its overhead costs for the coming year:The Other activity cost pool does not have a measure of activity; it is used to accumulate costs of idle capacity and organization-sustaining cost..
Needham Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Needham for 2008 are as follows:
Explain how a shift in the sales mix among 3 products (even if the total sales remain the same,as planned, say $500,000 ) could result in both a higher break-even point and a lower net operating income.
Compare an income statement and a balance sheet and why would a marketing manager find the income statement more useful than the balance sheet
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