Please classify each of the following, each category could be used more than once. 

When conducting a farm business analysis you notice your profitability is unsatisfactory, which 2 factors should you check?

Current liabilities are debts which must be paid in full within one year from the date of the balance sheet.

USEFUL EQUATIONS: Current Ratio= Current Assets / Current Liabilities  Working Capital= Current Assets – Current Liabilities   Debt to Asset Ratio= Total Liabilities / Total Assets  Equity to Asset Ratio= Total Equity / Total Assets  Debt to Equity Ratio (Leverage Ratio)= Total Liabilities / Total Equity   Debt Structure Ratio: Current Liabilities / Total Liabilities   Valuation Equity: Book Value – Market Value   ROA= Return to Assets / Average Assets  ROE= Return to Equity / Average Equity   Operating Profit Margin Ratio (OPM): Operating Profit / Gross Revenue   Straight-Line Depreciation: (Book Value- Salvage Value) / Useful Life  Declining Balance Depreciation: (Book Value at Start of Year) * R  R= 100/Useful Life 

The “cost value” shown on a balance sheet for an asset such as a tractor is equal to

What is your value of Total Operating Expenses?

What is the Operation Leverage for the above company?

What is the Breakeven Point in Units of Hot Cocoa? 

USEFUL EQUATIONS Future Value= PV (1 + i)n Present Value= FV / (1 + i)n Payback Period= Original Cost / Expected annual net cash revenue  Simple Rate of Return= average annual net revenue/ initial cost  Net Present Value (NPV)= P1 / (1+i)1 + P2 / (1+i)2+ P3 / (1+i)3- C  Current Ratio= Current Assets / Current Liabilities  Working Capital= Current Assets – Current Liabilities Debt to Asset Ratio= Total Liabilities / Total Assets Equity to Asset Ratio= Total Equity / Total Assets Debt to Equity Ratio (Leverage Ratio)= Total Liabilities / Total Equity Debt Structure Ratio: Current Liabilities / Total Liabilities Valuation Equity: Book Value – Market Value ROA= Return to Assets / Average Assets ROE= Return to Equity / Average Equity Operating Profit Margin Ratio (OPM): Operating Profit / Gross Revenue Average Physical Product (APP)= Total Physical Product / Input Level Marginal Physical Product (MPP)= Δ Total Physical Product / Δ Input Level Total Cost (TC)= Fixed Costs + (Variable Input Level * Variable Input Cost) Total Revenue (TR)= Total Physical Product * Price Profit= Total Revenue – Total Cost Marginal Revenue (MR)= Δ Total Revenue / Δ Total Physical Product Marginal Cost (MC)= Δ Total Cost / Δ Total Physical Product Marginal Value Product (MVP)= Δ Total Value Product / Δ Input Level Total Value Product (TVP)= Total Physical Product * Product Selling Price Marginal Input Cost (MIC)= Δ Total Input Cost / Δ Input Level Total Input Cost (TIC)= Input Level * Input Price  Average Asset Value = Purchase Price + Salvage Value / 2 Total Fixed Cost (TFC)= Add all fixed costs together Average Fixed Cost (AFC)= Total Fixed Cost / output Total Variable Cost (TVC)= Add all individual variable costs Average Variable Cost (AVC)= Total Variable Cost / Output Total Cost (TC)= Total Fixed Cost + Total Variable Cost Average Total Cost (ATC)= Total Cost / Output Marginal Cost= Δ Total Cost / Δ Output OR Δ Total Variable Cost / Δ Output Revenue= Sales Price Per Case x Total Cases Contribution Margin= Revenue – Total Variable Costs Net Income= Contribution Margin – Total Fixed Costs Contribution Margin per Unit= Contribution Margin / Total Cases Break-even Point per Unit= Fixed Costs / Contribution Margin per Unit Operation Leverage= Total Contribution Margin / Total net Operating Profit Contribution Margin Ratio= Contribution Margin / Sales Required Sales= Fixed Costs + Target Profit / Contribution Margin Ratio Straight-Line Depreciation= (Book Value – Salvage Value) / Useful Life Declining Balance Depreciation= Beginning Year Book Value * R R= 100 / Useful Life 

What is the Contribution Margin Per Unit of Wreaths?