Question 1

Variable costs: Operations: Hourly Personnel; Power; Corporate Services (wrong, look at
what services they exactly do)

Fixed costs: All other costs

Question 2

March:
Operations: Hourly personnel: 8664/361 = 24 ✓
Power: 1697/361 = 4.7 ✓

Question 3

Intracompany margin = 400 – 28.7 = 371.3/hour

Commercial margin = 800 – 28.7 = 771.3/hour
On the exam :
Intracompany hours = 205
Commercial hours = 138
show nav
yae
there! !
got
Total intracompany cost = 5883.50
Total commercial cost = 3960.6

Margin = 182 556 ✓

Then, less fixed expenses.

Question 4

Break-even point => PxQ – VCxQ – FC = 0

Sales revenue per unit => 82000/205 = 400

Break-even => (205 x 400 + C x 8°00) – (205 x 28.7 + C x 28.7) – 212 939

Break-even point => C = 177.39 hours ✓

Question 5

At the moment we have 138 commercial hours. 30% decrease in demand leads to 96.6
hours.

Revenue = 96.6 x 1000 + 205 x 400 = 178 600

Variable cost = 28.7 x 301.6 = 8655.92
Fixed cost = 212 939
Income = - 42 994,2 ✓
At the moment we have 138 commercial hours. 30% increase in demand leads to 179.4
hours.

Revenue = 179.4 x 600 + 205 x 400 = 189 640

Variable cost = 28.7 x 384.8 = 11032.82
Fixed cost = 212 939
Income = - 34331.28 ✓

At the moment we have 138 commercial hours. 30% increase in demand leads to 179.4
hours.

Revenue = 179.4 x 800 + 205 x 400 = 225 520

Variable cost = 28.7 x 384.8 = 11032.82 look at
Fixed cost = 212 939
Income = 1548.72 Solution
Question 6

I believe that Salem should keep their data service. The data service is a new, young
company which is obviously going to be loss-making in the first years. If you look at the
evolution of the losses over these three months you can see a promising decline.

eeeerage
Company
has
high op

→ FC / Te
te cep quant sold
reed .

lees
or deephouse op .
.