9 per cent as semi-fixed costs
such as cost of aircraft ownership, crew and overheads could not be reduced at the same rate as capacity.
In practice, it would incur many fixed and semi-fixed costs
, including rent, heating, insurance and salaries.
3) Direct labor, as a percentage of net product sales, decreased largely due to the benefit of higher net pricing, lower average wage rates from labor optimization strategies and changes in pay practices of certain team members, and excellent labor controls, which more than offset sales deleveraging on fixed and semi-fixed costs
In a deflationary spiral, firms with high operating leverage would likely lack the tools to respond quickly to weakening volumes and pricing by ratcheting down fixed or semi-fixed costs
Gross margin in the fourth quarter was 31%, up from 24% in the fourth quarter of fiscal 2006, and was positively impacted by a favorable product mix and the spreading of fixed and semi-fixed costs
over the higher revenue, which were partially offset by the increase in deferred profit.
The increase in costs is due to revenue mix and the semi-fixed costs
related to the snubbing/workover business in the Gulf of Mexico and Venezuela, and to start-up expenses of $0.
Quarter-over-quarter, the cost increases are due to revenue mix and semi-fixed costs
related to the hydraulic workover business in the Gulf of Mexico and Venezuela, and to start up expenses of $1.
The growth in margins as a percentage of revenue is due to an improved product mix and the spreading of fixed and semi-fixed costs
over the higher sales volume.
The growth in margins as a percentage of revenue is due to an improved product mix and the spreading of fixed- and semi-fixed costs
over the higher sales volume.
Overton said that bakery margin comparisons will likely continue to be under pressure until early next year principally as a result of the increases in fixed and semi-fixed costs
associated with the new production facility, as well as higher dairy-related ingredient costs.
5 million on a pretax basis (or 9 cents per share on an after-tax basis) and consist of the following items: the timing and amount of restaurant pre-opening cost amortization unfavorably impacted pretax income comparisons by approximately $636,000, or 4 cents per share; pre-opening costs are fully amortized over the 12-month period following the restaurant openings; higher fixed and semi-fixed costs
related to the estimated four-fold capacity increase of the new bakery production facility were approximately $438,000, or 3 cents per share; and, incremental operating expenses of a transitional nature were experienced with the new bakery production facility during the quarter which totaled approximately $398,000, or 2 cents per share.
The decline from prior year was the result of increased employee benefit expenses, higher freight costs and the impact of unfavorable leverage with lower volume on fixed and semi-fixed costs