FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If e. procurement sells more than 10,000 packages, Wang receives an additional $8 for each package sold beyond the 10,000 level. Q.1. What is the unit cost to ECG of Wang’s software code included in its e. procurement package if it sells (a) 2,000 packages, (b) 6,000 packages, (c) 10,000 packages, and (d) 20,000 packages? Comment on the results. Q.2. To predict ECG’s total cost of using Wang’s software code in e.procurement, which unit cost (if any) of (a) to (d) in requirement one would you recommend ECG use? Explain.
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- Q.1 ChemCo has developed a new product, and has consulted with its marketing department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be app- ropriate. ChemCo has been able to keep the cost per unit at $50.00. The company has spent a total of $900,000 to design and develop this product. Required: Use the above information to compute as follows: 1. Compute the expected margin for ChemCo 2. Compute the expected turnover 3. Compute the ROI Explain why it is necessary to do the above computations, and show how management can use this information for managing operationsarrow_forwardplease answer all three requirements thankuarrow_forwardKindly provide the correct option for number 6. Thankyouarrow_forward
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