All papers examples
Paper Types
Disciplines

# Song of Salmon Shipping Company: Staff Cost Proposal Report, Coursework Example

Pages: 1

Words: 388

Coursework

It is the principal recommendation of this report that the Song of Salmon Shipping Company adopts their proposed staffing changes in order to realise a substantial increase in their profit margins. By adopting the staffing changes, the increase in profits will be \$37,610, or an increase of over 200%.

Song of Salmon Shipping have stated that there will be changes to the haulage price (an increase from \$9.00 to \$9.50), the price of fuel per mile (an increase from \$2.00 to \$2.20), and the related sensitivity factor due to this fuel price increase (an increase from 65% to 75%), regardless of an increase in business growth. If the staffing levels and associated bonuses remain the same, then the number of contracted miles will have to decrease to 75,000 as this will be its staffing operational maximum. When these factors are economically modeled the profit will be calculated at \$29,300, with a break-even point of 71,134 (Horngren et al, 2012). The total costs – both fixed and variable and resultant revenue are shown below in Table 1.

 Total Costs \$683,200 Total Fixed Costs \$539,200 Total Variable Costs \$144,000 Total Revenue \$712,500

Table 1: costs and revenue – no staffing changes made

Once the proposed staffing levels are economically modeled, as well as a the projected increase in contracted mileage form 80,000 to 87,000 miles, the profit is calculated to be \$66,910, with a break-even point of 78,114. The total costs and revenue are shown in Table 2 below.

 Total Costs \$759,590 Total Fixed Costs \$588,200 Total Variable Costs \$171,390 Total Revenue \$826,500

Table 2: costs and revenue – staffing changes adopted

It can be seen that there is a relatively even amount of increase for both the variable and fixed costs associated with increasing the staffing levels, and associated benefits; what has been significant with the addition of the staffing proposal is the projected increase in the total revenues. Accounting break-even analysis, and associated sensitivity analysis (Kee 2007), can often result in quite noteworthy changes to revenue and resultant profits, despite the introduction of higher costs and overheads.

References

Kee, R. (2007). Cost-volume-profit analysis incorporating the cost of capital. Journal of Managerial Issues, Winter Vol.19 (4), pp 478 – 485).

Horngren C., Harrison, W., Oliver, M., (2012) Accounting (9th Ed.). Chap 19 – pp 925-944, Prentice Hall.

Time is precious

don’t waste it!

Get instant essay
writing help!

Plagiarism-free
guarantee

Privacy
guarantee

Secure
checkout

Money back
guarantee

### The “White Snow”, Coursework Example

Folklore, myth, and wonder are frequently used in fairy testimonies to make them seem more appropriate for children. These stories may not be as toddler-friendly [...]

Pages: 8

Words: 2063

### Water Pool Equipment Bid, Coursework Example

Statement of work The work under this contract is the construction of water pool equipments for the federal government.  The work is therefore limited to [...]

Pages: 4

Words: 1057

### Old and New Media, Coursework Example

Question: Do traditional media have an advantage over emerging media? If so, what are they? If not, why not? From Professor Kelsee Traditional media doesn’t [...]

Pages: 4

Words: 1039

### The Categories of Performance Measurement, Coursework Example

Identify the categories of performance measurement and discuss activities that are part of each category. Performance measurement provides the ability for individuals or groups holding [...]

Pages: 4

Words: 1214

### Suicide Prevention, Coursework Example

Why is an intervention needed? Suicide is a common problem that plagues adolescents today. Many individuals choose suicide as an option because they do not [...]

Pages: 14

Words: 3847

### The Pathophysiology of Skin Cancers, Coursework Example

The intent of this paper will be to elaborate and describe in detail, the origin, pathology, the cell characteristics, symptoms, as well as methods of [...]

Pages: 3

Words: 942

### The “White Snow”, Coursework Example

Folklore, myth, and wonder are frequently used in fairy testimonies to make them seem more appropriate for children. These stories may not be as toddler-friendly [...]

Pages: 8

Words: 2063

### Water Pool Equipment Bid, Coursework Example

Statement of work The work under this contract is the construction of water pool equipments for the federal government.  The work is therefore limited to [...]

Pages: 4

Words: 1057

### Old and New Media, Coursework Example

Question: Do traditional media have an advantage over emerging media? If so, what are they? If not, why not? From Professor Kelsee Traditional media doesn’t [...]

Pages: 4

Words: 1039

### The Categories of Performance Measurement, Coursework Example

Identify the categories of performance measurement and discuss activities that are part of each category. Performance measurement provides the ability for individuals or groups holding [...]

Pages: 4

Words: 1214

### Suicide Prevention, Coursework Example

Why is an intervention needed? Suicide is a common problem that plagues adolescents today. Many individuals choose suicide as an option because they do not [...]

Pages: 14

Words: 3847

### The Pathophysiology of Skin Cancers, Coursework Example

The intent of this paper will be to elaborate and describe in detail, the origin, pathology, the cell characteristics, symptoms, as well as methods of [...]

Pages: 3

Words: 942

### Coursework

Get a Free E-Book (\$50 in value)

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!