Boston Beer Company Financial Summary

The total cost of production of Sony’s new product is the addition of both fixed and variable costs. Fixed costs are assets within a business that are not used up or sold during the typical production course e.g. buildings and machinery. Variable costs are costs that fluctuate in time with the production output or sales revenue of a company such as Sony e.g. raw material and labour costs. Figure 1.1 shows how the total cost is composed of both fixed and variable costs.

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

This report has been prepared for Ginnie Adams of The Bottled Water Company to provide an analysis of the profitability of the new product line and its effect on net income. In analyzing this new product line financials statements such as: Sales Budget, Production Budget, Direct Materials Budget, Direct Labor Budget, Selling and Administrative Expense Budget, Cost of Good Manufactured Budgeted Income Statement were used. Net income has been computed through the use of the Budgeted Income Statement and enabled the additional calculations of Cost of Goods Sold Ratio, Gross Profit Margin Ratio, as well as, Profit Margin Ratio. The conclusions drawn from the data analyzed shows that Bottled Water Company has drawn a Net Income of $53,959.

The Boston Beer Company filed its initial public offering prospectus with the SEC because they were looking to raise between $26 and $34 million for

Several attempts have been made by Boston Beer Company to continue on a growth streak but not all attempts have been successful. The main goals for Boston Beer Company are to increase revenue and continue growing in the industry. Boston Beer Company has had trouble growing as barriers of entry are low and competition is high. Even though the market has seen a slight upturn, however Boston Beer’s founder Jim Koch elaborates on the company’s dissatisfaction, “We are disappointed with our depletion trends in 2016, which have remained weak so far in 2017. These trends are affected by the general softening of the craft-beer category and cider category and a more challenging retail environment with a lot of new options for our drinkers”. (https://www.fool.com/investing/2017/02/22/boston-beer-finds-growth-the-hard-way.aspx)

Fixed costs are expenses that do not change as production levels change. Fixed costs for the production of dealybobs could include the lease on the building they’re produced at, property taxes, insurance, security, advertising, interest expenses, utilities expenses, etc.

Taking pride in developing staff, implementing new technology, and assisting the leadership team in making financial decisions. Three basic fiscal management terms are fixed, variable, and semi-variable costs. Fixed costs are costs that do not vary in total when activity levels (or volume) of operation

In Exhibit 2, Salem Data Services Summary (SDS) Results of Operations, First Quarter 2004, it focuses on fixed expenses and variable expenses. It is essential for SDS to understand their business costs. The fixed costs are those expenses that do not fluctuate with changes in the level of business activity. According to SDS Q1 report, these expenditures include items such as expenses, equipment costs, wages and salaries. The Variable costs are expenses that vary depending on a company's production volume that can either increase or decrease. The variable costs are the power and operations hourly personnel.

Fixed cost or expense are variables that are not effected by the change in production or sales. A variable cost or expense is effected directly by a change in production volume or sales. We will categorize our Fixed and variable cost and expenses. First, we have variable data: executive salaries, insurance and property taxes. These items are located on schedule 7 of our Excel analysis. Second we have fixed variables, raw material direct labor, and inventory.

Product costs or variable costs are all such costs that form part of the inventory. The product cost is the cost of all the different components which make up the product. This may either be the purchase price if the components are bought from outside suppliers, or the combined cost of materials and manufacturing processes if the component is made in-house. Period costs or fixed costs are all such costs that are not incurred in connection to the production.  Period expenses are those which occur during a period of time and cannot be easily associated with products or the production process.  Period expenses are those for selling and administrative functions – as opposed to manufacturing functions.  Examples of period expenses include rent, interest, taxes, sales salaries, etc.  Rent on a factory, for instance is constant for a period regardless of how many units were produced in that factory.

In this study, I present findings to show if there is a causal relationship between advertising costs and sales revenues. The financial data was extracted from the Annual and Financial Reports of Target Corporation, a publicly traded company. I performed several statistical tests with finding that support my hypothesis. I find that advertising cost does positively affect sales.

The connecting link is fixed and variable costs this influence the budget formed by the flexible variables. The variable expenses comprise of those business-operating expenses with altering the changeable pricing. These expenses usually modify the relationship of the products or services. For example, an increase in merchandise demand impulsively raises the work and resources costs. For example, heavy rain means more business for lawn services though higher costs for work and gas.

Factors affecting fixed costs include costs that do not change with an increase or decrease in the amount of goods or services produced. Fixed costs are also an expenses that has to be paid by a company. It is one of the

All the costs by a company can be broken into two categories, fixed costs and variable costs. Costs that are independent of output are called fixed costs. Fixed costs remain constant throughout the relevant range and are usually considered sunk for the relevant range. Buildings and machinery are included inputs that cannot be adjusted in the short term. They are only fixed in relation to the quantity of production for a certain time period. The cost of all inputs is variable, in the long run.

Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line depreciation expense, etc.