Recent orders
Cost-Volume-Profit analysis
Financial Plan
Budgeted income statement
The budgeted income statement for the event is given as under.
Table SEQ Table * ARABIC 1: Budgeted income statement
Budgeted income statement
Price 100 Customers 150 Customers
Sales 80 125
Ticket 1 20 1600 2500
Ticket 2 25 2000 3125
Ticket 3 30 2400 3750
CDs 50 4000 6250
T-Shirts 80 6400 10000
Posters 45 3600 5625
Total sales 250 20000 31250
Less: variables costs
CDs 30 2400 3750
T-Shirts 50 4000 6250
Posters 10 800 1250
Total variable costs 90 7200 11250
Contribution margin 160 12800 20000
Less: fixed costs
S, G, & A costs 2500 2500 2500
Total fixed costs 2500 2500
Add: Donations 100000 100000 100000
Net income $110,300 $117,500
Here, the assumption is that Sales, General, and Administrative costs will be $2,500. This will be due to the various marketing and advertising expenses born by the organizers, as well as petty cash available for miscellaneous administrative expenses.
Cost-Volume-Profit analysis
The cost-volume-profit analysis is supposed to develop the break-even sales volume and dollars for the business. In addition, the target profit method gives the volume of sales required to achieve the target profit. Finally, the margin of safety indicates as to what is the ratio of additional sales required to achieve the target. These are given in Table 2.
Table SEQ Table * ARABIC 2: Cost-volume-profit analysis
Cost-Volume-Profit analysis
Contribution margin 160
Fixed costs 2500
Break-even volume 15.625
Total sales 250
CM ratio 0.64
Break-even sales 390.625
Desired profit 10000
Desired profit volume 78.125
Margin of safety 0.8
It is also pertinent to develop a graph of the break-even point. The break-even graph is given in Figure 1.
Figure SEQ Figure * ARABIC 1: Break-even graph
The break-even graph indicates that about 15 units need to be sold in order to get a break-even.
Cost-benefit analysis
The cost-benefit analysis is done for an alternative scenario where the event will be organized in-house in an auditorium, instead of in the park. The alternative budgeted income statement is given in Table 3.
Table SEQ Table * ARABIC 3: Alternative in-door event
Budgeted income statement 2
Price 100 Customers 150 Customers
Sales 80 125
Ticket 1 20 1600 2500
Ticket 2 25 2000 3125
Ticket 3 30 2400 3750
CDs 50 4000 6250
T-Shirts 80 6400 10000
Posters 45 3600 5625
Total sales 250 20000 31250
Less: variables costs
CDs 30 2400 3750
T-Shirts 50 4000 6250
Posters 10 800 1250
Total variable costs 90 7200 11250
Contribution margin 160 12800 20000
Less: fixed costs
S, G, & A costs 5000 5000 5000
Total fixed costs 5000 5000
Add: Donations 100000 100000 100000
Net income $107,800 $115,000
The cost-benefit analysis is given in Table 4.
Table SEQ Table * ARABIC 4: Cost-benefit analysis of in-door event
Cost-benefit analysis of in-door event
Costs
Additional S, G & A 2500
Request to accommodate 5000
Air-conditioning and lighting 10000
Premises cleaning 2000
Lower advertising and displays 5000
Unease of volunteers and organizers 5000
Loss of unlimited space 10000
Total costs $39,500
Benefits
Protection from bad weather 5000
Protection from sunlight 5000
Ability to organize programs 8000
Availability of seating 12000
Total benefits $30,000
Cost-effectiveness ratio 0.759494
Here, the cost-effectiveness ratio is less than 1, which means that the event must not be organized indoors as the costs exceed the associated benefits.
Post-event performance measurement
The actual income and variances are given in Table 5.
Table SEQ Table * ARABIC 5: Variance analysis
Budgeted income statement and variances
Price 100 Customers 150 Customers Actual Variances
Sales 80 125 160 35
Ticket 1 20 1600 2500 1600 -900
Ticket 2 25 2000 3125 1125 -2000
Ticket 3 30 2400 3750 1050 -2700
CDs 50 4000 6250 6000 -250
T-Shirts 80 6400 10000 7200 -2800
Posters 45 3600 5625 5625 0
Total sales 250 20000 31250 22600 -8650
Less: variables costs
CDs 30 2400 3750 3750 0
T-Shirts 50 4000 6250 6250 0
Posters 10 800 1250 1250 0
Total variable costs 90 7200 11250 11250 0
Contribution margin 160 12800 20000 20000 0
Less: fixed costs
S, G, & A costs 2500 2500 2500 6000 3500
Total fixed costs 2500 2500 6000 3500
Add: Donations 100000 100000 100000 120000 20000
Net income $110,300 $117,500 $134,000 $16,500
There were both favorable and unfavorable variances. There was favorable variance in the number of customers who turned up at the event. However, nearly all of the revenue categories showed unfavorable variances. These were all volume variances, as the prices were fixed. Then, there were no variances in the variable costs as these had mostly been incurred in advance. Then, these were semi-variable costs and not fully variable costs in reality. This happened as the orders for these products had to be placed beforehand and the products ready for the event. Then, these costs were variable only in their prices and not with respect to the level of sales. Finally, there was an unfavorable variance in the fixed costs as the miscellaneous general and administrative expenses turned out to be much higher than expected. Finally, there was a favorable and positive variance in the amount of donation received.
However, it is equally important to measure the qualitative factors and outcomes of the event as well. These qualitative outcomes include a super-duper mega event which was attended by 160 people, excluding the volunteers and the organizers. The quality of the concert was also great and the visitors highly appreciated the musical performances that were given. The event also got much publicity and there were a number of media and press personnel who were videotaping and following the event. Consequently, the non-profit organization got much publicity and acclaim in the newspapers for organizing such a successful event.
Delegate to Second Continental Congress
Delegate to Second Continental Congress
Contestant’s Full Name and Address:
Contestant’s Phone Number:
Contestant’s School:
Name of Sponsoring DAR:
Number of Words: 684
Delegate to Second Continental Congress
In 1775, in Massachusetts, a war broke out between Britain and its North American colonies. Delegates from all 13 colonies met in Philadelphia in May of 1775 to modify the acts they had established in the first Congress. I was elected as one of the delegates to represent Virginia. America had suffered a lot from colonization. Some of the effects of colonization were war, diseases, and slavery. However, there were also good things, such as building quality houses, growth, and infrastructure development. In this paper, I’m going to discuss my contribution to Congress.
Firstly, I contributed to the declaration of independence. July 2, 1726, we had a meeting in Philadelphia where we voted to declare the United States of America as an independent country. On July 4, we signed the declaration of independence. Initially, we had not formed a second continental congress to declare independence. The pressure of independence came between 1775 and 1776 because our colonists, Great Britain, had refused to give us our demands, and they were making our lives to be more hostile. In May 1776, we suggested creating our own government independent of our colonists.
I was also a member of the committee in which we were tasked with drafting a declaration. Jefferson drafted it, and we revised it with other delegates and members of Congress. In his draft, he condemned George 111 for allowing slavery. He argued that all men are created equal and subjected to equal rights. A wealthy band of highly educated men signed the declaration of independence. The independence allowed us to seek alliances with other foreign countries. This helped us in a revolutionary war. Without their support, we could have lost because we lacked the improved infrastructure to provide our Continental Army with sufficient supplies and provisions. One of the greatest alliances that were formed was the Franco-American alliance which brought much success. It funded and supplied the Continental army with provisions and supplies. The Declaration of independence also enabled the government to perform its normal functions.
Secondly, we backed up the appointment of ambassadors. We appointed George Washington as the commander in chief of the continental army and gave him powers to raise the army. Washington was given the power to select and guide the generals. The first attempt to fight for our states was In June 1776 and was conducted by the Board of War and ordnance committee. This committee was succeeded by a Board of war in mid-1777 and included some members of the defense forces. Washington was in charge of training the army and providing supplies. Baron Friedrich Wilhelm von Steuben was assigned a duty to train soldiers. The army was transformed into a powerful and disciplined one. Although the supply of troops was under the purview of Congress, Washington pressured them to provide the essentials.
Washington was also assigned duties of balancing regional demands and feeding, arming, equipping, and moving troops. Although there was no money, Washington managed to build experienced troops. The British seized New Jersey, but Washington attacked them back with surprise. He crossed the icy Delaware River, and he managed to defeat all British armies in New Jersey. He was defeated in 1777 with the defense of Philadelphia, and with the support of Horatio Gates, he managed to defeat Burgoyne at Saratoga. The victory led the French to form an open military alliance with them through the Treaty of Alliance (1778). Spain and the Netherlands joined France to undermine British powers. Britain, without friends, suffered from increased war. French, Spain, Netherlands, and American forces cooperated American army, and the French army fought the British army until 1783 when peace was attained. Washington led to the revolutionary of the American war.
To conclude, delegates helped in the declaration of independence and the appointment of the chief commander of the continental army. The declaration of independence unified us and enabled us to fight our colonists with unity. This was an easy way to make peace agreements with Great Britain. The chief commander of the continental army made surprise attacks which made us achieve independence.
References
Declaration of independence (USA). (n.d.). Encyclopedia of Early Modern History Online. https://doi.org/10.1163/2352-0272_emho_com_029235A&E Networks Television. (2020, January 15). Founding fathers. Biography.com. Retrieved November 2, 2022, from https://www.biography.com/people/groups/founding-fathers
Cost Opportunity Principles of Economics
Cost Opportunity Principles of Economics
Student’s Name:
Institutional Affiliation
Opportunity Cost Principles of Economics
Introduction
In this article the opportunity cost principles of economics are greatly explored. Resource scarcity in economics is one of the most basic concepts. Trade offs are necessitated by the resource scarcity, and opportunity costs come out or result from the trade offs. Even though, mostly the services or goods costs are viewed or thought of in terms of money. The decision opportunity cost is based on the next best alternative or what must be given up as a result of the decision made. An opportunity cost involves any decision that entails a choice or decision between two or more options. Optional decisions mostly based on needs and wants are valued in strategic way that all choices made offer opportunities in cost, this in turn affect the choices people make. Any choice opportunity cost is the best alternative value that in making the choice had to be foregone. With this overview, this article will address the following questions pertaining to opportunity cost in an essay form.
The approximate tuition and other fees dollar cost associated with taking this economics course is roughly $250.00 a semester hour or $1000 a course. When it comes to determining whether the opportunity cost of taking this course is fully reflected in the dollar cost, the answer would definitely be a yes. Since, I am active most of the time due to the military duty; I get my classes paid for by tuition assistance. Even after getting the yearly $4500 given by the school is spent, the costs of continuing my education, even if paying out of pocket is still beneficial since it supports my opportunity cost of taking college courses. In the time I used to take the courses in college, I would have rather applied the opportunity costs. Time is the hardest thing to make due to my busy schedule especially since it involves making room for the courses. The main advantages that come with the opportunity costs of talking the courses and getting the degree in college, include getting higher chances of better paying jobs (Rittenberg and Tregarthen, 2009).
Preservation and conservation of land would be some of the initiatives that would be included to the already implemented opportunity cost of preserving part of northern Canada by prohibiting any heavy crude oil extraction. This can be explained simply by the logic that since there would be no excavation or drilling on the lands. There would then be no sludge or chemicals that would ruin the lands resources. If looked from another perspective, other than microeconomics, the unpolluted lands would be beneficial still to the Mikisew Cree tribe people, who due to the potential abundance of natural resources they would be able to survive in the environ. The cost of engaging in the excavations is steep and in turn it still adds to the creation of green house gas in the environment. It is evident that alternate means of mining or attaining the heavy oil should be found and implemented instead of the currently implemented excavations and fracking for the oil which do more harm than good to the environment.
Increase in the quality or in the increase in the physical quantity of the way things are available or are made accessible to a technological or economical gain will allow for more production of services and goods in the economy. The economy’s production possibility curve will shift outwards. Economic growth is whereby there is a process in which an economy can attain in its production possibilities an outward shift. The main advantage that these change present include there being not only more jobs opportunities for all but also better prices in the economy.
Examples of some of the factor that can affect the possibilities of production frontier include; changes in productivity factor, either capital or labor. Productivity of capital, labor or land can be influenced by many things. One both labor and capital can be decimated by war; environmental damage is another issue, as shown in the U.S during the 1930s dust bowl, which extensively impacted on agriculture or its effects in sub-Sahara Africa. Another example is like the 1970s and 60s misguided economic policies as in the case of South America. In the poor countries economic development debates at that time, there existed two divergent schools of thoughts (Frederick, Novemsky, Wang, Dhar & Nowlis, 2009).
The Asian economies side mainly believed that through centralizing on productivity in industries which they were strongest they would develop faster and that is what they implemented. The other camp mainly that of the South American economies, instead chose to follow the option of implementing the path of import-substitution, whereby they mainly focus their own economies in producing many different things from jets to food, while subsequently discouraging other countries imports. To make the path of import-substitution work, they were forced to operate and invest in areas where their production was not very efficient; this drastically affected their possibilities of production frontier possibilities.
The EU output has been positively affected by the removal of the trade barriers. In that through the elimination of restrictions and boarders, free trade between countries has been allowed, that is similar to the free trade between states in the U.S. Countries can also benefit from this trade since they can now move their products much easier, between the borders. Another fact is that with the laxity in the rules the countries can now trade much better as in those with agriculture can come learn from those with technology and vice-verse, with this the economic growth within the E.U countries develop at similar rate.
Conclusion
If economists consider opportunity cost to be one of their most valued gifts globally, able to achieve much good in peoples public and private lives, then the inaction opportunity cost is bigger. An alternative however, has been proposed that puts the whole concept in a different dimension. Opportunity cost has always been perceived as being difficult concept, not a fundamental but either an optional or subsidiary concept. That actually needs a much deeper grasp of the concept, but in actuality it’s not a guarantee for success in the economics career.
Reference
Frederick, S., Novemsky, N., Wang, J., Dhar, R., & Nowlis, S. (2009). Opportunity cost neglect. Journal of Consumer Research, 36(4), 553-561.
O’Donnell, R. (2009). THE CONCEPT OF OPPORTUNITY COST: IS IT SIMPLE, FUNDAMENTAL OR NECESSARY?. Australasian Journal of Economics Education, 6(1), 21-37
Rittenberg L. and T. Tregarthen (2009). Chapter 1: Economics: The Study of Choice. Principles of Microeconomics.
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