Target Costing H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $70. Banks requires that new products be priced such that 22% of the price is profit. Required: If required, round your answers to two decimal places. 1.  Calculate the amount of desired profit per unit of the new toaster. $ 2.  Calculate the target cost per unit of the new toaster. $

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Majesty Company uses target costing to ensure that its products are profitable. Assume Majesty is planning to introduce a new product with the following estimates:               Estimated market price $ 1,500   Annual demand   86,000  units Life cycle   7  years Target profit   26 % return on sales       Required: 1. Compute the target cost of this product. 2. Compute the target cost if Majesty wants a 36 percent return on sales. 3. Compute the target cost if Majesty wants a 7 percent return on sales.

Liberty Coffee sells three small coffees for every large coffee. A small coffee sells for $3.00, with a variable expense of $1.50. A large coffee sells for $5.00, with a variable expense of $2.50.Requirements1. Determine the coffee shop’s monthly breakeven point in the numbers of small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of expenses: variable and fixed.2. Compute the coffee shop’s margin of safety in dollars.3. Use the coffee shop’s operating leverage factor (using the July contribution margin income statement) to determine its new operating income if sales volume increases 12%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged.

Calculate the total cost, total selling price and selling price per brownie. Note: Round your answers to the nearest cent. Item Brownies Total quantity bought Unit cost 10 $ 0.95 Total cost Percent markup on cost 70 % Total selling price Percent that will spoil 10 % Selling price per brownie

Calculating Price Using a Markup Percentage of Cost Lake McDonald Gift Shop has decided to price the games that it sells at cost plus 70%. The National Parks Memory Card Game costs $15.00 each, and another one, the Guess This Animal Track Game, costs $2.00 each. Required: 1.  What price will Lake McDonald Gift Shop charge for each National Parks Memory Card Game? If required, round your answer to two decimal places.$fill in the blank 1 2.  What price will Lake McDonald Gift Shop charge for each Guess This Animal Track Game? If required, round your answer to two decimal places.

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Target Costing Toyota Motor Corporation uses target costing. Assume that Toyota marketing personnel estimate that the competitive selling price for the Camry in the upcoming model year will need to be $23,300. Assume further that the Camry's total unit cost for the upcoming model year is estimated to be $19,800 and that Toyota requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost). a. What price will Toyota establish for the Camry for the upcoming model year? 18,640 X b. Since the estimated manufacturing cost exceeds objectives. the target cost, Toyota must reduce its total costs to maintain competitive pricing within its profit Feedback Check My Work a. What dictates the price? b. Compare desired profit with estimate price.

Required: Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.18 and estimates its variable cost to be $0.16 per hanger. Laguna's total fixed cost is $2,260 per month, which consists primarily of printer depreciation and rent. Calculate the number of advertising hangers that Laguna must sell in order to break even. Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number. Break-even Hangers

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