Do not give image format Kingbird Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came upwith the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each ofthe four types listed, above) for $51. This represents a savings to the consumer of 15% off regular, individual prices for the items. Thecompany has been operating within its target cost for all of these products, which have a combined total of $33 per bundle. Theproposal includes a target sales volume of 10,000 bundles.(a)Your answer is correct.If Kingbird requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have?Asset base $900000 (b)Your answer is correct.If Kingbird recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $131,000) in the comingyear to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places, e.g.15.25.)New target cost per unit $Show Transcribed TextYour Answer Correct Answer* Your answer is incorrect.ROIIf Kingbird finds that it has to drop its target selling price to $51.00 to really promote this bundle, what ROI will the company earn,incorporating the new target cost per unit from part (b)? (Round answer to 2 decimal places, e.g. 15.25%.)30.3819.03% %

Target CostingThe target costing approach is followed in the competitive market where the seller…

Answered: Kingbird Inc. has been producing…

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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Victor has been making basic mouse traps since 1898. This year, Victor expects a total contribution (TC) of $324,003.48 on sales of 217,452 units. Wholesalers distribute the mouse traps through independent hardware stores and home centers. The wholesalers use a selling price basis of 20%, earning them a CPU of $0.62 per mouse trap. Consumers buy the mouse traps for $4.99. (c) What is the wholesaler’s cost? $2.51 $2.46 $2.53 $2.48
Juan Fox’ has started her own company, Foxy Jeans, which manufactures imprinted jeans. Since he just begun this operation, he rents the equipment from a local printing shop when necessary. The cost of using the equipment is P3,000. The materials used in one jean cost P200, and he can sell it at 350. Requirements: Provide for a mathematical model that will show how to maximize the profit. IF Juan sells 100 jeans, what will his total revenues, total costs, and profit? How many jeans must Juan sell to have zero profit and zero loss (break-even)?
a retailer wants to add a line of bike carriers to his sports department and plans to sell one model at $39.99. If he can buy a good product for $32.50 less 20%, will he be able to get his usual markup of 42% on the selling price and sell the carrier at the price he set?
Night Shades Inc. (NSI) manufactures biotech sunglasses. These sunglasses sell for $150 each, and cost $70 each to produce. Night Shades Inc. has fixed costs of $100,000. Calculate Night Shades’ Breakeven point. how much profit (loss) will Night Shades have if it sells 500 sunglasses? 4,000 sunglasses? Night Shades’ manager expects an operating profit of $200,000. How many sunglasses must be sold to attain this profit?
Knarly Knife Kompany is thinking about launching a new kitchen knife set. Relevant fixed costs for this launch would be $1.3 million. The knife sets would sell for $55 each, earning a contribution margin of $22.93 per set. Suppose Knarly introduces the new knife set and sells exactly 45,600 knife sets. What would be Knarly's profit or loss on the launch, in dollars? (If it is a loss, be sure to include a negative sign. Rounding: whole dollar.) Answer is: -254,392, but HOW is that the answer? Please explain.
PLEASE ANSWER IT NOW, I NEED THE ASNWER. A hardware store purchased a tool at P20,000 per unit. At what price should the tool be sold so that giving a 15% discount, will provide them with 25% profit?
A Company wants to introduce new mobile phone into the market. The estimated price of each mobile phone is RO 800. The company requires a profit margin of 15% on sales. Calculate a target cost for the new mobile phone.
EAT's Fruit Stand currently sells 60,000 heads of fruit each year for P1.00 per fruit. EAT is thinking of expanding operations and serving the customer better by purchasing a “slice and dice” machine that will cut up each head of fruit into bite-size pieces. EAT expects he will then be able to sell his fruits for P1.70 per head. EAT has prepared the following analysis for each option based on sales of 60,000 heads of fruits. Selling Unsliced Fruit: Per Head Total Variable costs P0.25 P15,000 Fixed Costs 0.30 18,000 Total P0.55 P33,000 Selling Sliced Fruit: Per Head Total Variable costs P0.30 P18,000 Fixed Costs 0.90 54,000 Total P1.20 P72,000 Assume that EAT is currently selling only 50,000 heads of fruits per year instead of 60,000. Under this scenario, what will be EAT’s increase/decrease in profit for the year if he chooses to sell it a whole instead of slicing up the fruit?
Symbol, Inc. manufactures 3 products with the following sales price: Small $3 Medium $6 and Large $12 . The company would like to enhance the products by adding a color design to each. The cost of adding the color design will be 20% of the current sales price. The company estimates that the sales price after adding the color design will be $3.50,$7 , and $15 respectively for Small, Medium and Large. Determine what the company should do to increase operating profit.
Faster Stationery would like to sell a box of gel pens at the price of RM45. There are 12 gel pens in a box. The operating expenses are RM1.50 for a gel pen. If the company want to have 25% of net profit based on cost, a) Find the cost of a gel pen. b) Determine whether there is any profit or loss incurred if the company want to sell a box of gel pens at RM42.
Suppose your company sells a 3 pack of lenses that attach to smart phones to improve the quality of pictures people take. You pay $29.95 for each 3 pack and sell them for $59.95. What is your Cost of Goods Sold Percentage for this item?
- "Jack's T-Shirt Emporioum" produces novelty T-Shirts, with the primary equipment being a screen print machine. a "Jack's" generates $60,000 a year in profit. - Jack (the owner) feels that he could increase sales if he had a new machine with advanced capabilities (e.g. embroidery), so he purchases a new machine for $30,000 (cash). Jack estimates this machine to have an effective useful life of 5 years, and $5,000 residual (salvage) value, so Depreciable Value = $25,000. The new machine will depreciate over 5 years at $5,000 / year. o In this years financial statements, Jack reflects the purchase as a $5,000 expense, thus reducing his profit to $55,000. o Jack will show a $5,000 expense for Machine Purchase over the following 4 years. %3D Quiz#5: In the “Jack's" example, what amount will be recorded in the Cash Flow Statement related to this machine purchase?

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