Baird Enterprises produces a product with fixed costs of $42,300 and variable cost of $3.60 per unit. The company desires to earn a $27,000 profit and believes it can sell 11,000 units of the product. Required a. Based on this information, determine the target sales price.

Baird Enterprises produces a product with fixed costs of $42,300 and variable cost of $3.60 per unit. The company desires to earn a $27,000 profit and believes it can sell 11,000 units of the product. Required a. Based on this information, determine the target sales price.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Determine the markup percentage on total cost. 1%

A: Cost-Plus is a method of product pricing, under which price of the product is decided by adding the…

Q: Unit selling price 46 44 Variable cost per unit 7 19 Seventy percent of the unit sales are X, and…

Q: Hummingbird Company uses the product cost concept of applying the cost-plus approach to product…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Required information [The following information applies to the questions displayed below.] Oslo…

A: The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Q: Wheeler Company can produce a product that incurs the following costs per unit: direct materials,…

A: The differential analysis is performed to compare the different alternatives available with the…

Q: Stuart Corporation sells hammocks; variable costs are $71 each, and the hammocks are sold for $136…

A: Sales Volume (in units) = (Fixed costs + Desired profit) / Contribution per unitSales volume (in…

Q: Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per…

A: Mark up % is % of Mark up over product cost

Q: Moon Company uses the variable cost method of applying the cost-plus approach to product pricing.…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…

Q: Hummingbird Company uses the product cost method of applying the cost-plus approach to product…

A: Product cost: The cost that can be apportioned to the product is known as product cost. It is the…

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…

A: A financial management approach called cost-volume-profit (CVP) analysis looks at the connections…

Q: Please fill out this chart

A: Step 1: Contribution margin per unit Contribution margin = Selling price per unit - Variable cost…

Q: Blanchard Company manufactures a single product that sells for $136 per unit and whose total…

A: Contribution means the difference between the selling price and variable cost. Break even point…

Q: Carla Vista Corporation has fixed costs of $270,500. It has a unit selling price of $6.60, unit…

A: Formulas: Sales units = (Fixed cost + Profit) / (Selling price - Variable cost)

Q: Find the stock turnover at cost and at retail. Average Inventory at Cost $22,310 The stock turnover…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing.…

A: a. Compute the amount of desired profit from the production and sale of 5,080 cell phones:

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…

A: Net operating income is calculated as excess of sales revenue over total cost.

Q: Alpha Company’s Manager is considering selling price for product C. The company is using Absortion…

A: Absorption Costing: The absorption costing method is used by the companies to calculate the costs…

Q: Tidewater Company uses the product cost concept of applying the cost-plus approach to product…

A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Mallory Company uses the product cost method of applying the cost-plus approach to product pricing.…

A: Mark up means the profit margin earned on the basis of selling price or cost price.Markup percentage…

Q: Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans…

A: Break even point (Units)= Fixed cost / Contribution margin per unit Break even point ($)= Fixed…

Q: Jerome Company has manufactured a product and has provided you the following relevant range of…

A: Net operating income: It can be defined as the excess of a company's sales revenue over the costs…

Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…

A: This is based on the concept of break-even analysis and cost volume profit analysis. Fixed costs…

Q: Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: Toussaint Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed…

A: Contribution Margin is derived by deducting sales revenue and variable cost. This is the profit…

Q: Jarvis Company uses the total cost concept of applying the cost-plus approach to product pricing.…

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three subparts…

Q: Molly Company sells 30,000 units at $43 per unit. Variable costs are $26.66 per unit, and fixed…

A: CVP analysis is used in decision-making by the management. It helps to make strategies and take wise…

Q: Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and…

A: The sales mix of the X and Y is 60% and 40% respectively. To determine the selling price, variable…

Q: Stuart Company Stuart Company manufactures a single product. Each unit sells for $15. The firm's…

A: Given, Variable costs per unit: Production $5 SG&A $1 Fixed costs: Production…

Q: Vernon Manufacturing Company established the following standard price and cost data $9.00 per unit $…

A: Flexible BudgetA flexible budget is a financial instrument that allows businesses and organisations…

Q: Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing.…

A: Lets understand the basics.Cost of the product includes all the cost i.e. variable as well as fixed.…

Q: Sunn Company manufactures a single product that sells for $240 per unit and whose variable costs are…

A: Lets understand the basics.For calculate sales in units or sales in amount required to achieve…

Q: Bright Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $90 per…

A: Markup (%) on Product cost = (Desired Profit + Selling and administrative expense) / Product cost

Q: SBD Phone Company sells its waterproof phone case for $109 per unit. Fixed costs total $257,000, and…

A: Number of units to be sold for earning desired income means how many units needs to be sold for…

Q: Hunter Ltd sells a unique product with the following information available: Sales price $85 per…

A: Fixed cost remains constant. They will not change by change in output. Thus for production and…

Q: fit is $24.00 per unit. ermine the markup percentage using the (a) total cost, (b) product cost, and…

A: The markup is the excess amount charged as compared to product cost. The markup percentage is…

Q: Munoz Company incurs annual fixed costs of $125,220. Variable costs for Munoz’s product are $28.80…

A: Sales in dollars means the amount of sales revenues earned by the entity, by selling the goods in…

Q: XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable…

A: Variable cost per unit (A)=$210+$60=$270Variable cost per unit (B)=$228+$72=$300

Q: The following information applies to the products of Baird Company. Product A Product B $ 15 $ 16 12…

A: "Contribution" is frequently used to refer to profit or income generating. In particular, the…

Q: Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing.…

A: MARKUP PERCENTAGE Markup Percentage is Computed :— = (Profit ÷ Cost) * 100 Markup percentage is a…

Q: m 17 to 33 cubic feet. The demand iven in Table 7. The variable cost (ir

A: this can be modeled as a shortest path problem with 8 nodes, one labeled 0 and the other 7 labeled…

Q: Current operating income for Bay Area Cycles Company is $26,000. Selling price per unit is $100, the…

A: Contribution margin is defined as the excess of the selling price over the variable cost incurred in…

Q: Jamison Company uses the total cost method of applying the cost-plus approach to product pricing.…

A: Mark-up % on total cost = Desired Profit / Total Costs x 100

Q: Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon…

A: Sales price can be calculated by dividing the total cost by product cost as a percentage of sales.…

Q: amison Company produces and sells Product X at a total cost of $1,300 per unit, of which $880 is…

A: Mark up: Mark-up can also be defined as the gross margin of a sale, but the term is normally used in…

Q: please step by step solution.

A: The contribution margin per unit is calculated by subtracting the variable cost per unit from the…

Q: Jamison Company uses the total cost method of applying the cost-plus approach to product pricing.…

A: when the goods are produced by the company it in needed to be sold by the company above the cost…

Question

Required

a. Based on this information, determine the target sales price.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Keller Company sells product ZR101 for $25 per unit. The cost of one unit of ZR101 is $18. The estimated cost to complete a unit is $4, and the estimated cost to sell is $6. At what amount per unit should product ZR101 be reported, applying lower-of-cost-or-net realizable value?
Crescent Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $66 per unit, of which $33 is product cost and $33 is selling and administrative expenses. In addition, the total cost of $66 is made up of $45 variable cost and $21 fixed cost. The desired profit is $12 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole number.
Green Thumb Garden Tools Inc. produces and sells home and garden tools and equipment. A lawnmower has a total cost of $230 per unit, of which $160 is product cost and $70 is selling and administrative expenses. In addition, the total cost of $230 is made up of $120 variable cost and $110 fixed cost. The desired profit is $58 per unit. Determine the markup percentage on product cost.fill in the blank --- %
Merlot Manufacturing Ltd makes three different products, the details of which are as follows: Product (code name) 167X 325Y 7422 Selling price per unit (£) 40 30 28 Variable cost per unit (£) 15 18 14 Weekly demand (units) 45 50 20 Skilled labour time per unit (hours) 3. Skilled labour time is limited to 200 hours a week. Which combination of products should be manufactured if the business is to produce the highest profit? Show your answer by filling out the table below. (Round up units of product 167X units of product 325Y units of product 742Z Enter any number or expression in each of the edit fields. 26
2. vandolf, inc. produces and sells two products: a ceiling fan and a table fan. vandolf plans to sell 30,000 ceiling fans and 70,000 table fan in the coming year. product price and cost information includes: ceiling fan table fan price p 60 p 15 unit variable cost 12 7 direct fixed cost p 23,600 p 45,000 common fixed selling and administrative expenses total p 85,000. required: a. what is the sales mix estimated for next year (calculated to the lowest whole number for each product)? b. using the sales mix from the first requirement, form a package of ceiling fans and table fans. how many ceiling fans and table fans are sold at break-even? c. prepare a contribution-margin based income statement for vandolf,inc., based on the unit sales calculated in requirement in b. d. what if vandolf, inc., wanted to earn operating income equal to p 14,400? calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income. ( hint: remember to form a package…
Blue Company developed the following information for its product: Per Unit Sales price $90 Variable cost 63 Contribution margin $27 Total fixed costs $1,215,000 Required:Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? 2. What is the total sales that must be generated for the company to earn a profit of $60,000?
Solve this problem is solution
Answer the required question. Provide a complete solution thank you
Soft Co. makes and sells two types of products, X and Y. Data concerning these products are as follows: (Photo)Required: Calculate the number of units that the company must sell to break even
Blossom Corporation has fixed costs of $404,700. It has a unit selling price of $7.00, unit variable cost of $5.45, and a target net income of $1,539,000.Compute the required sales in units to achieve its target net income. Required sales
Bambam Inc. produces BingBong products. Cost data are as follows: Fixed selling cost of 200; variable product cost of 5 per unit; variable selling cost of 2 per unit and fixed overhead cost of 500. If the company will produce 500 units, what is the total cost?
Jarvis Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 35,000 units of Product E are as follows: Variable costs: Direct materials $3.00 Direct labor 1.25 Factory overhead 0.75 Selling and administrative expenses 3.00 Total $8.00 Fixed costs: Factory overhead $50,000 Selling and administrative expenses 20,000 Jarvis desires a profit equal to a 14% rate of return on invested assets of $450,000. a. Determine the amount of desired profit from the production and sale of Product E. $ 63,000 b. Determine the total costs and the cost amount per unit for the production and sale of 35,000 units of Product E. Total manufacturing costs 350,000 V Cost amount per unit 10 c. Determine the markup percentage for Product E. 18 V % d. Determine the selling price of Product E. Round your answer to two decimal places.