If the target selling price is $120 and the target profit margin is a 40% mark-up on cost, what is the target cost?
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If the target selling price is $120 and the target profit margin is a 40% mark-up on cost, what is the
target cost?
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- 5. Given MC = Dtc/dQ = 42+18Q -12Q' , given total fixed cost is 56 . Find the total cost , average total cost and variable cost.All of these statements about price are true except which? Multiple Choice The price must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product. The price for a product or service must earn a profit for the company. Small changes in price can have big effects on both the number of units sold and company profit. For most products and services, there is an agreed-upon price range set by makers. The price must be “right”—in the sense that customers must be willing to pay it.Required: A. What are the actual and budgeted selling prices? What are the actual and budgeted variable costs per unit?B. Calculate all the required variances and present the variance analysis report.
- Total costs equal sum of variable and fixed costsTrueFalseTouché Toiletries, Inc. has developed an additionto its Lizardman Cologne line tentatively brandedOde d’Toade Cologne. Unit variable costs are45 cents for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d’ToadeCologne is priced at $7.50 for a three-ounce bottle. How many bottles of Ode d’Toade must be sold to break even?What are the major price implications of the PIMS studies?Suggest possible explanations for the relationships the PIMSstudies reveal.
- 1. At a local Bed and Bath Superstore, the manager knows her customers will pay no more than $390 for a bedspread. The company wants a 40% markup on selling price. What is the most that the company can pay for a bedspread to realize the required markup?What is Supplemental specification?2. Describe the concept of a product's VTC. Why is the monetary estimation of this value important for price setting?
- What are Functional discounts:?21) The volume packs so typical of the products sold at Costco demonstrate multiple-unit pricing. A) True B) False 22) The geographic pricing arrangement of F.O.B. Destination sees the buyer paying for the costs of the freight. A) True B) False 23) A supplier pays a retailer a shelving allowance for the purpose of securing shelf space. A) True B) False 24) A manufacturer that keeps a record of customer volume and issues cheques at a later date to cover allowances earned over the term of the offer is allowing a discount on the basis of a bill-back. A) True B) False 25) "3/10, net 30" means that a customer whose payment is received 3 to 10 days after reception of the invoice will get a 30% discount. A) True B) False 26) The buying committee turned to the sales manager of a new line of cereals and stated that it would cost the company $50,000 to get the products listed and placed on their store shelves. The buying committee is asking for a slotting allowance.…18. An Estimate price, which is expected to be paid by the customer for a particular market offering is classified as____ a. Target Price b. Target service c. Target Cost d. Target Product