Variable cost free essay sample

Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $8, compute the break-even point. 5-3. Solution: Therapeutic Systems Fixed CostsVariable Costs (per unit) Rent$120,000 Factory labor$1. 50 Executive under contract$112,000 Raw materials. 70 $232,000$2. 20 4. Break-even analysis (LO2) Draw two break-even graphs—one for a conservative firm using labor-intensive production and another for a capital-intensive firm. Assuming these companies compete within the same industry and have identical sales, explain the impact of changes in sales volume on both firms profits. -4. Solution: Labor-Intensive and capital-intensive break-even graphs The company having the high fixed costs will have lower variable costs than its competitor since it has substituted capital for labor. With a lower variable cost, the high fixed cost company will have a larger contribution margin. Therefore, when sales rise, its profits will increase faster than the low fixed cost firm and when the sales decline, the reverse will be true. We will write a custom essay sample on Variable cost or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 5. Break-even analysis (LO2) Eaton Tool Company has fixed costs of $200,000, sells its units for $56, and has variable costs of $31 per unit. a. Compute the break-even point. b. Ms. Eaton comes up with a new plan to cut fixed costs to $150,000. However, more labor will now be required, which will increase variable costs per unit to $34. The sales price will remain at $56. What is the new break-even point? c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)? 5-5. Solution: Eaton Tool Company a. b. The breakeven level decreases. c. With less operating leverage and a smaller contribution margin, profitability is likely to be less than it would have been at very high volume levels. . Break-even analysis (LO2) Jay Linoleum Company has fixed costs of $70,000. Its product currently sells for $4 per unit and has variable costs per unit of $2. 60. Mr. Thomas, the head of manufacturing, proposes to buy new equipment that will cost $300,000 and drive up fixed costs to $105,000. Although the price will remain at $4 per unit, the increased automation will reduce variable c osts per unit to $2. 25. As a result of Thomass suggestion, will the break-even point go up or down? Compute the necessary numbers. 5-6. Solution: Jay Linoleum Company The break-even point will go up. 7. Cash break-even analysis (LO2) Calloway Cab Company determines its break-even strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $400,000, but 20 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $3. 60. How many units does the firm need to sell to reach the cash break-even point? 5-7. Solution: Calloway Cab Company Cash related fixed costs = Total Fixed Costs – Depreciation = $400,000 – 20% ($400,000) = $400,000 – $80,000 = $320,000 9. Cash break-even analysis (LO2) Boise Timber co. omputes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $6,000,000, but 25 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $4. How many units does the firm need to sell to reach the cash break-even point? 5-9. Solution: Boise Timber Co. Cash related fixed costs = Total Fixed Costs – Depreciation = $6,000,000 – 25% ($6,000,000) = $6,000,000 – $1,500,000 = $4,500,000 10. Degree of leverage (LO2 5) The Sterling Tire Companys income statement for 2010 is as follows: STERLING TIRE COMPANY Income Statement For the Year Ended December 31, 2010 Sales (20,000 tires at $60 each)$1,200,000 Less: Variable costs (20,000 tires at $30)600,000 Fixed costs 400,000 Earnings before interest and taxes (EBIT)200,000 Interest expense 50,000 Earnings before taxes (EBT)150,000 Income tax expense (30%) 45,000 Earnings after taxes (EAT)$ 105,000 Given this income statement, compute the following: a. Degree of operating leverage. b. Degree of financial leverage. c. Degree of combined leverage. d. Break-even point in units. 5-10. Solution: Sterling Tire Company Q = 20,000, P = $60, VC = $30, FC = $400,000, I = $50,000 a. b. c. d.

Rape Simulator Video Games and Democracy Essays

Rape Simulator Video Games and Democracy Essays Rape Simulator Video Games and Democracy Paper Rape Simulator Video Games and Democracy Paper Is the rape simulator video game good or bad for democracy? Throughout human history violent forms of entertainment have existed alongside refined ones. In Ancient Rome, for example, when modern mediums of entertainment such as Television, video games, etc did not exist, gladiator fights were a popular pass-time. This prompted Saint Augustine to note that not only did people liked violence as passive spectators, but it has also induced in them a ‘fascination for blood’. Today, such violence-ridden games like gladiator fights are forbidden by law and social norms. But the ‘fascination for blood’, apparently inherent to human nature, is exploited by movie makers and video-game manufacturers. The movie titled Gladiator, starring Russell Crowe, is one example of this phenomenon; the controversial rape simulator video game produced in Japan is another key example. While the former is legally permitted and is accepted by mainstream audiences and commentators, the latter has not gained approval on both legal and ethi cal grounds. The game has been banned in the United States due to its perverse and obscene nature. For instance, players earn points for acts of sexual violence, including following girls (mostlty wearing highschool outfit), raping virgins and their mothers, and then forcing them to have abortions. (Moses, 2010) The public debate that the game has spurred has expanded beyond its utility, value, etc, to broader considerations such as its effect on the health of democracy. The rest of this essay will support the view that videogames such a Rape Simulator are not only hazardous for the players and the societies they inhabit, but their negative effects pervade to undermine democratic processes and institutions of a country. According to Aristotle’s theory of Catharsis, people release their violent pulsation by seeing them portrayed by other agents/actors. This way the pent up frustration is released, which could otherwise lead to violent behavior. Applying this theory to the video-game in question, one could deduce that playing the game will reduce the actual number of incidents of rape in society, for the real is substituted by the simulated. (End Violence Against Women, 2010) But actual facts are not consistent with the theory, as proved by scholar S.Feshback. He took 625 junior high school boys and asked half of them to watch a violent television program for 6 weeks. The other half was as to watch non-violent programming. At the end of 6 weeks, when teachers evaluated the students, no difference in aggressive behavior was observed. However, there was a decline in aggression among students who were previously assessed by personality tests to be more inclined toward aggressive behavior. Co nsidering that such students formed only a small minority, the Catharsis theory does not hold true for this case. Countering the validity of the Catharsis theory is the Aggressive Simulation theory, which states that people are inspired by what they see. Meaning that if they see violence they will reproduce it. In other words, what these video games do is to break down social barriers for those who are predisposed to such behavior. Since the maintenance of law and order is essential for the smooth functioning of democratic societies, it follows that perpetration of violent behavior (as a mirror effect of watching and simulating violent acts) will undermine democracy. (Alexander, 2009) We live in a world were we are constantly bombarded with information, most of which encourage us to buy this or that product. The power of marketing has already been demonstrated through the century long history of our Public Relations industry. Indeed, the PR industry and the media together wield huge power over the thoughts of citizens. In such a scenario, a person with a fragile mind, meaning someone who cannot make the distinction between what is right or wrong, receives massive exposure to violence through advertisements and other marketing campaigns, it can lead to disastrous consequences. These include acts of brutality, anger, savageness, torture, sadism, etc (all of these qualities are encouraged by Rape Simulator). Hence it is imperative that such games are censored or banned from public consumption. (Haydon, 2009) The fact that Rape Simulator encourages sexual acts with schoolgirls is a cause for concern, as it implies pedophilia. Although the game is meant for adults only, the objects of sexual desire depicted within it qualify as adolescents. The same criticism can be applied toward the sale of schoolgirl outfits in sex shops. Both of them are encouraging pedophilia and rape and inducing perversity and abuse, which are inconsistent with democratic concepts. We can no longer argue that it is it is not so bad for society, for it is just a game and it doesn’t harm anybody. In fact, based on the dangers to democracy we discussed so far, one can further argue that any video game that includes murder, war, robbery, gun shot should be therefore forbidden. (The Free Library, 2010) At least in these latter examples, one could come up with justifications. For example, one can justify robbery (to feed oneself or pay the rent to give a home to his/her children), one can justify shooting wi th a gun (to kill a murderer, saving lives), and one can justify war (which our government does it everyday). The rape simulator video game, on the other hand, is undermining the very integrity and foundations of democratic civil society. We should also keep in mind that censorship and freedom of speech are counteracting principles. But virulent forms of free expression such as the Rape Simulator game should be banned in the larger interests of democratic societies. This conflict is identified by sexual assault victims’ rights advocates as well. But they say that civil rights should not be abused in order to promote a culture of tolerance for rape and violence against women. (Haydon, 2009) On the other hand, banning or censoring any thing puts it on the spotlight, giving it free publicity that marketers are happy to see happen. In my own case, my first reaction when I heard about this game was to go â€Å"check it out†; and am sure such is the reaction of many players. Even if the game is made illegal, there are many ways for getting hold of it and playing it. Censuring it is not going to stop people to play it as it only adds publicity and attention to the game . However making it legal would also not serve the democratic purpose, as it would mean that society has lost its ethical compass and the sense of right and wrong. Hence, in conclusion, a tactful and nuanced dealing of the problem is required. Otherwise, democratic societies will steadily march toward decadence and anarchy. Bibliography Race Simulator game goes Viral amid calls for Censorship, retrieved from on 5th November, 2010 Leigh Alexander, And You Thought Grand Theft Auto Was Bad : Should the United States ban a Japanese â€Å"rape simulator† game?, Monday, March 9, 2009, Rape Simulator games and the Normalization of Sexual Violence, The Free Library retrieved on 5th November, 2010 from Harry Haydon, Rape Simulator sold in Amazon, 13th Feb, 2009, retrieved from Video game featuring rape pulled from Amazon, retrieved on 5th November, 2010 from Japan: Rape simulator games and the normalization of sexual violence, Say No- End Violence Against Women, retrieved on 5th Novemeber 2010 from Asher Moses, Rape Simulator game goes Viral amid calls for Censorship, March 31, 2010, retrieved on 5th November, from youtube.com/verify_age?next_url=http%3A//www.youtube.com/watch%3Fv%3Da54Pu9dTJfQ