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Figuring Fixed Costs Essay

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10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows $20,500.00-(3,500*$3.93) =$6,745.00 According to the following “formula:

PX=A+Bx
5.77x=$6,745+$3.93”
5.77-$3.93=$6,745+ ($3.93-$3.93)
1.84x=$6,745
1.84x*1.84x=$6,745*1.84x
“X=3,666 Monthly BEP
3,666*12= 43,992 BEP for the fiscal year” (Oppapers.com, 2012), for the Westchester Home- Service Meal Delivery program, since the program received 45,000 meals to serve and only needed 43,992 of them their profit is going to come from selling the other 1008 meals at a .

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84 per meal making a profit of $1,854.72.

10.2 NRCC and Its BEP
Annual revenue = $20.00 per subscription
Annual variable rise for “making and mailing six bimonthly issues has risen 4.50 “(Martin, L., 2001) (NRCC) annual fixed cost is 6,000 + 3,900 = 9,900
Per subscription (NRCC’s) annual margin would be 20-4.5 for a total of 15.5 Making their BEP as follows 9,900/15.5 equaling 639
PX = A+Bx
20x=6,000+3,900+4.50x
20x=9,900+4.50x
20x-4.50x=9,900+ (4.50x-4.50x)
15.5x=9,900
15.5x/15.5x=9,900/15.5x
X=639
No way is this feasible, because there are two staff members, who are all ready at the maxim capacity of 650, leaving no capacity for any kind of slack.

References:
Martin, L. (2001). Financial Management for Human Services Administrators. Needham Heights, MA: Allyn & Bacon http://www.oppapers.com, 2012
http://www.studymode.com,2013
University of Phoenix. (2001). Financial Management for Human Service Administrator. Retrieved from University of Phoenix, HSM 260 website.

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