Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Target Costing, Strategy Benchmark Industries manufactures large workbenches for industrial use. Wayne Garrett, Benchmark's vice president for marketing, has concluded from his market analysis that sales are dwindling for the standard table because of aggressive pricing by competitors. This table sells for $875 whereas the competition sells a comparable table in the $800 range. Wayne has determined that dropping the price to $800 is necessary to maintain the firm's annual market share of 10,000 tables. Cost data based on sales of 10,000 tables follow:
Budgeted Amount
Actual Amount
Actual Cost
Direct materials
400,000 sq. ft.
425,000 sq. ft.
$2,700,000
Direct labor
85,000 hrs.
100,000 hrs.
1,000,000
Machine setups
30,000 hrs.
300,000
Mechanical assembly
320,000 hrs.
4,000,000
Required
1. Calculate the current cost and profit per unit.
2. What amount of the current cost per unit is attributable to non-value-added activities?
3. Calculate the new target cost per unit for a sales price of $800 if the profit per unit is maintained.
4. What strategy do you suggest for Benchmark to attain the target cost calculated in requirement 3?
Would the companys operating profit have been $3,600,000 lower?
Compute each partners equity on the books of the new partnership - Admission of a new partner
Determine Due date for the note and Interest earned during the term of the note
Prepare a statement of cost of goods manufactured and an income statement
on june 30 2013 georgia-atlantic inc. leased a warehouse facility from ic leasing corporation. the lease agreement
Compute the annual interest rate implicit in the sales discount and should the customer borrow from the bank so that he can take advantage of the discount?
Evaluate managements discussion and analysis
Jim Abbott purchased a $60,000 RV with a 40 percent markup on selling price. (a) What was the amount of the dealer's markup? (b) What was the dealer's original cost?
Gilberto Company currently manufactures one of its crucial pars at a cost of $4.45 per unit. This cost is based on a normal production rate of 65,000 units per year. Variable costs are $1.95 per unit, fixed costs related to making the part are $65..
Calculate ending inventory and cost of goods sold at October 31, 2012, using the specific identification method
Evaluate the individual product costs per unit assuming that Tiger Furnishings uses machine-hours to allocate overhead to the products.
Prepare a single well organized report for the General Manager using the data provided. Be sure to include appropriate variance analysis.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd