Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014. Given information: 2014, Variable costs are $2,000,000. Fixed costs are $2,500,000. Operating income is $180,000. Number of units sold are 500,000. Total investment is $ 2,250,000

Question

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Answer 1

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Answer 2

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Answer 6

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

Answer 7

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

Answer 8

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

Answer 9

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

Answer 10

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

Answer 11

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

Answer 12

4.

To determine

Concerns in implementing CEO’s plan.

Answer 13

4.

To determine

Concerns in implementing CEO’s plan.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 13 - What are the three major influences on pricing...Ch. 13 - Relevant costs for pricing decisions are full...Ch. 13 - Describe four purposes of cost allocation.Ch. 13 - How is activity-based costing useful for pricing...Ch. 13 - Describe two alternative approaches to long-run...Ch. 13 - What is a target cost per unit?Ch. 13 - Describe value engineering and its role in target...Ch. 13 - Give two examples of a value-added cost and two...Ch. 13 - It is not important for a company to distinguish...Ch. 13 - Prob. 13.10Q

To calculate: New selling price. Given information: Reduction in fixed cost is by $225,000. Reduction is per unit sale price is by $0.30.

To calculate: Operating income with reduction in units sold by 5%.

Concerns in implementing CEO’s plan.

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Chapter 13 Solutions

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.