Colored fiberglass stringers can also be used The fin or skeg is made of wood

Colored fiberglass stringers can also be used the fin

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basswood, or spruce. Colored fiberglass stringers can also be used. The fin, or skeg, is made of wood or laminated layers of fiberglass and resin. The Manufacturing Process >Forming the foam core >Adding the stringer >Shaping the blank >Laminating the outer shell >Applying the filler coat and adding the fin >Sanding the board Surfboard may cost between $380 and $1,030 or more Source https:// rice-interviewed-business-surfing
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Income Statement A. Traditional Format BGLBOARD COMPANY Income Statement For the Year Ended December 31, 2019 Sales $500,000 Less: Cost of Goods Sold 380,000 Gross margin $120,000 Less: Operating expenses: Selling expenses $35,000 Administrative expenses 35,000 70,000 Net income $50,000 B. Contribution Format BGLBOARD COMPANY Income Statement For the Year Ended December 31, 2019 Sales $500,000 Less: Variable expenses: Variable manufacturing $280,000 Variable selling 15,000 Variable administrative 5,000 300,000 Contribution margin $200,000 Less: Fixed expenses: Fixed manufacturing $100,000 Fixed selling 20,000 Fixed administrative 30,000 150,000 Net income $50,000
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The Break-Even Point The break-even point is the point in the volume of activity where the organization’s revenues and expenses are equal. Sales $250,000 Less: variable expenses 150,000 Contribution margin 100,000 Less: fixed expenses 100,000 Net income $ -
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Equation Approach Sales revenue – Variable expenses – Fixed expenses = Profit Unit sales price × Sales volume in units Unit variable expense × Sales volume in units ($500 x X) – ($300 x X ) - $80,000= $ 0 ($200X) – $80,000 = $0 X = 400 surf boards
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Contribution-Margin Approach Total Per Unit Percent Sales (500 surf boards) $250,000 $500 100% Less: variable expenses 150,000 300 60% Contribution margin $100,000 $200 40% Less: fixed expenses 80,000 Net income $ 20,000 Fixed expenses Unit contribution margin = Break-even point (in units) $80,000 $200 = 400 surf boards
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Contribution Margin Ratio Calculate the break-even point in sales dollars rather than units by using the contribution margin ratio. Contribution margin Sales = CM Ratio Fixed expense CM Ratio Break-even point (in sales dollars) =
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Contribution Margin Ratio Total Per Unit Percent Sales ( 400 surf boards) $200,000 $ 500 100% Less: variable expenses 120,000 300 60% Contribution margin $ 80,000 $ 200 40% Less: fixed expenses 80,000 Net income $ - $80,000 40% = $200,000 sales
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Cost-Volume-Profit Graph Viewing CVP relationships in a graph gives managers a perspective that can be obtained in no other way.
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