QS 25-17 (Algo) Pricing using total cost LO P6José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $240 each. Jose believes hecan produce a birdhouse for a total cost of $205 per unit, and he plans a 20% markup on total cost.(a) Compute José's planned selling price(b) is Jose's price lower than competitors' price?Complete this question by entering your answers in the tabs below.Required A Required BCompute José's planned selling price.Selling priceper unitRequired B >

The following formula used to calculate as follows under:-Markup= Selling price - costsRate of…

Answered: QS 25-17 (Algo) Pricing using total…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QS 25-20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $520 each. The company currently sells 4,450 bikes per year and could make as many as 4,800 bikes per year. The bikes cost $285 each to make: $190 in variable costs per bike and $95 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 350 bikes for $480 each. Incremental fixed costs to make this order are $100 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? (a) Special offer analysis Contribution margin Income (b) The company should Per Unit Total
Question 3 Ava's Creations sells two products. A and B. The weighted average per unit is $36 and Ava's fixed costs are $20300. The sales mix is 55% for A and 45% for B. How many units of Product A must be sold by Ava to break-even? <<< Question 3 of 9
3 OPTIMAL PRICING TO MAXIMIZE PROFIT The Calculus Canned Corn Company's production facility has a weekly overhead cost of $1000 with a unit cost of producing each can of $0.66 plus the cost of the can itself (from part 2). 1. Find the total cost C(D) in dollars of producing D cans of sauce. Cost of can 19 lo cents. 2. Use previously-determined information to find C(p), the total cost in dollars to produce enough cans to satisfy demand when the price is p dollars. (That is, replace D with an expression in terms of price.) 3. Profit is the defined as Revenue minus Cost. Find the total profit P(p) in dollars as a function of the unit price p in dollars. It is a good idea to use parentheses in order to avoid a sign error 4. Use technology and calculus to determine the price at which profit is maximized and the profit that will be attained. There are multiple correct methods. Explain/show your approach and results in the space below.
Problem 1 a Reuben’s Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Relevant Costs Materials $0.24 Labor $0.40 Variable Overhead $0.16 Fixed Overhead (30% of $.20) $0.06 - Total Cost (30,000 Rolls Per Year) - Offer by Supplier $0.90 Total Cost (30,000 Rolls Per Year) - Continue Manufaturing $- Purchase from Supplier $- Increase/Decrease in Profit $-
Calculating a Target Cost RU Listening manufactures cell phones and is developing a new model with a feature (targeted at parents of teens) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 a.m. The new phone model has a target price of $370. Management requires a 10% profit on new product revenues. Required: If required, round to the nearest dollar. 1. Calculate the amount of desired profit.$fill in the blank 1 2. Calculate the target cost.$fill in the blank 2
esc QUESTION 12 Indiana Bones, Inc., produces and sells 2,000 units of a single product, a deluxe dog house: Selling price per unit Variable cost per unit Annual fixed cost What is the company's breakeven point in sales dollars? Round your answer to the nearest whole dollar. Click Save and Submit to save and submit. Click Save All Answers to save all answers. MacBook Pro # $ 4323 4 2 ! 1 Q W E R do L % 5 T < C 6 & Y 7 I * 8 U $5,000 $1,000 $500,000 9 J -
QUESTION 6 Wok Around the Clock, Inc., sells specialty woks. In the current year it expects to incur $810,000 in variable costs and $140,000 in fixed costs to make and sell 10,000 woks at $100 each. If Wok Around the Clock accepts a special order from Hard Wok Cafe to purchase 1,000 woks at $75. Wok Around the Clock will also have to pay $1,200 in shipping costs to deliver the special order. How much would it make or lose on this special order? ENTER A LOSS WITH A "-" SIGN. DO NOT USE PARENTHESES. EXAMPLE: -1,000 QUESTION 7 Daffy Duct, Inc., has the capacity to produce 12,000 cases of duct tape per year but only produces and sells 10,000 cases at $50 per case. The direct materials equals $130,000, direct labor equals $110,000, and overhead equals $100,000. Sixty percent of the manufacturing overhead is variable. The forty percent of fixed overhead is allocated equally to all products. Dewey, Cheatum & Howe has offered to purchase 1,000 cases but at a reduced price of $40 per case. What…
stion 3 Ava's Creations sells two products. A and B. The weighted average per unit is $36 and Ava's fixed costs are $20300. The sales mix is 55% for A and 45% for B. How many units of Product A must be sold by Ava to break-even? <<< Question 3 of 9
Question 15 of 16 Elise and her friend Eloi developed an online car repair training course and sell it for $69 per course. The contribution margin per course is $26 and to break even they need to have a total revenue of $12,420 per annum. a. What is the break-even volume? Round up to the next whole number b. What is the fixed costs per annum? Round to the nearest cent c. What is the total revenue if they sell 3,020 courses this year?
Question 42: Suppose that JVC is trying to decide how to price a new stereo system composed of a receive CD player, and speakers. The company's economists have estimated that three different groups will purchase these products: students, restaurant owners and club owners. The cconomists analysis suggests that the total market for its brand of stereos consists of 100 students, 150 restaurant owners, and 25 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows: Group CD Player Speakers Receiver Students $100 $200 $125 Restaurant $200 $100 $250 owners Club owners $250 $75 $300 What is JVC's maximum revenue if it uses a commodity-bundle strategy such that the receiver, CD player, and speakers are sold as one item? Answer: Maximum revenue = Instructions: Enter your response rounded to the nearest whole number. Write down the intermediate steps on the exam sheet for partial credit.
ab. ock esc ~ Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year. The tablet information is as follows: Selling price per unit Direct material cost per unit Direct labor cost per unit Total unavoidable allocated overhead How much would Operating Income decrease if Microhard were to eliminate the tablets? DO NOT INCLUDE PARENTHESES OR NEGATIVE SIGNS IN YOUR ANSWER. Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 Q A @ 2 W S $60 $30 $10 $48,000 #M 3 E $ 4 D R % от оро 5 F MacBook Pro < 6 T G & of r 7 Y H * 00 つ

QUESTION 18 Determine question 18 to 20 based on the following Rroblem: Vicky Payne sells beauty supplies. Her annual demand for a particular skin lotion is 7,000 units. The cost of placing an order is $10 while the holding cost per unit per year is 10 percent of the cost. This item currently costs $2.50 if the order quantity is less than 1500. For orders 1500 or more units, the cost falls to $2.45. If Vicky Payne wishes to minimize her total annual inventory costs, he must evaluate the total cost for two possible order quantities. What are these two possible quantities? (Round answer to nearest unit.) OA 237 and 239 OB. 748 and 756 OC 748 and 1500 O D. 756 and 1500 QUESTION 19 3 poir How many units should Vicky Payne order to minimize her total annual inventory cost? (Round your answer to the nearest unit.) OA 748 OB. 756 OC 1500 OD. 1501

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