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BIZ201 Accounting For Decision Making Management

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Question:

a) Explain and evaluate the role and importance of financial information in business decision making
 
b) Apply relevant accounting concepts to simple business scenarios

d) Apply basic costing and budgeting techniques to business decision making

e) Apply capital budgeting techniques to capital investment scenarios

They have asked for your expertise to carry out a CVP analysis for this promotion.

1.Calculate the following: The contribution margin per unit of service (a unit of service is one night’s accommodation for one guest).

2.The contribution margin ratio.

3. The annual break-even point in units of service and in dollars of service revenue.

4. The number of units of service required to earn a target net profit of $ 100, 000 for the year (ignore income taxes).

5. Analysis the importance of CVP analysis and comment on effectiveness of this promotion based on your calculations.
 
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