What price should be set under full cost pricing

Assignment Help Finance Basics
Reference no: EM131435151

Assume a clinical laboratory is considering a new test. Here are the key assumptions: annual fixed direct costs = $40,000, annual overhead allocation = $10,000, variable cost per test = $8, and expected volume = 10,000 tests. What price should be set under full cost pricing?

Reference no: EM131435151

Questions Cloud

Discuss whether the elements of a contract are satisfied : Discuss whether the elements of a contract are satisfied in this case. Two days after that Mark said: "I'm sorry Johnny you made an offer in writing to buy my car. I'm going to hold you to that."
Manufactures and sells radio equipment for private aircraft : For the purpose of this role-play, assume the role of a sales manager who is currently supervising a sales team made up of 22 salespeople. Your employer manufactures and sells radio equipment for private aircraft. Use these questions to interview ano..
Inpatient cost for population : Furthermore, it plans to pay contracting hospitals $900 per inpatient day for care provided. What is the per member per month (PMPM) inpatient cost for this population?
Write important project documents for a service type project : In this option, you will develop, compile, and write important project documents for a service type project with an international component in a company or non-profit organization that you have selected.
What price should be set under full cost pricing : Here are the key assumptions: annual fixed direct costs = $40,000, annual overhead allocation = $10,000, variable cost per test = $8, and expected volume = 10,000 tests. What price should be set under full cost pricing?
Housekeeping department of micanopy hospital : The Housekeeping Department of Micanopy Hospital has direct costs of $600,000. The hospital's four patient service departments utilize the following amounts of space: Department A = 3,000 square feet, Department B = 2,000 square feet, Department C..
What is the implied variable cost rate : The hospital is considering a scanner (scanner A) that will result in total fixed costs of $1 million per year and would yield a profit of $500,000 if the hospital produced and billed for 5,000 scans. What is the implied variable cost rate (variab..
What did you initially think about the black man : When you first watched "The Lunch Date," what did you initially think about the black man at the diner? How did you perceive his behavior? Did you perceive him as doing anything 'wrong
Environment is standardized using group policy : Assume you have been tasked with implementing Group Policy for 100 computers and over 120 end users. You need to ensure that most of the computer and end users’ environment is standardized using Group Policy. What are your most important concerns and..

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What birthday is kyle celebrating today

Kyle will make his first deposit into an account paying 1% monthly (and so compounded each month as well) in the amount of $1,127.5 one month from today, and he will continue to make an identical deposit each month up to and including the day he t..

  Optimal debt ratio

The Goreman Company has a debt ratio of 33.33%, and it needs to raise $100,000 to expand. Management feels that an optimal debt ratio is 16.67 percent.

  What does this say about the manufacturer''s claim

To test this, a consumer group found the cost of maintaining 10 cars for a year, and the mean saving was €79 with a standard deviation of €20. What does this say about the manufacturer's claim?

  What does the market believe that 2-year treasuries

If the interest rate on a 3-year Treasury Note is 3.00%, and 5-year Notes are yielding 3.75%, then based on the expectations theory, what does the market believe that 2-year Treasuries will be yielding 3 years from now?

  What is storage and why is it risky

What is storage? Why is it risky? What role does it play in the economy? Why is delivery important if so few futures contracts end in delivery?

  If you have 20000 in an account earning 8 annually what

1. the goal of the firm should benbspa. maximization of profitsnbspb. maximization of shareholder wealthnbspc.

  Proposals to improve the profitability

You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company.  Each proposal is independent of the other.  Answer all questions.  Showing your work..

  Evaluate job offers-synergy through mergers and acquisitions

You've two job offers, one from a dominant-business firm and one from an unrelated diversified firm (suppose the beginning salaries are virtually identical). Which offer would they accept and why?

  Compute the economic value added

This machine will cost $10 million and will produce cash flows of $1 million and the end of every year forever. The appropriate cost of capital is 8%. Compute the economic value added (EVA) for this project. The PV of the EVAs for this project i..

  Question-nbspdescribe how each of the subsequent actions or

question-nbspdescribe how each of the subsequent actions or problems can distort or disrupt the capital budgeting

  Is he liable as an indorser why or why not

He contended that the check had not been dishonored within the time allowed by law. Is he liable as an indorser? Why or why not? Can you please go into detail as the wording of this question throws me off a little bit.

  Suppose that a manufacturer is going to produce a part

suppose that a manufacturer is going to produce a part which is a component of a number of his assembled products. the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd