Calculate the target cost for maintaining current market

Assignment Help Accounting Basics
Reference no: EM13523019

A company's sales volume averages 4,000 units per year.
Recently, its main competitor reduced the price of its product to $48.
The company expects sales to drop dramatically unless it matches the competitor's price.

In addition, the current profit per unit must be maintained.
Information about the product (for production of 4,000) is as follows.

Standard Quantity Actual Quantity Actual Cost
Materials (pounds) 5,800 6,000 $60,000
Labor (hours) 1,800 2,000 $20,000
Setups (hours) 0 225 $8,000
Material handling (moves) 0 400 $5,000
Warranties (number repaired) 0 300 $15,000
Required

Calculate the target cost for maintaining current market share and profitability.
Calculate the non-value-added cost per unit.
If non-value-added costs can be reduced to zero, can the target cost be achieved?

Reference no: EM13523019

Questions Cloud

Explain how much heat will be transferred when tio2 reacts : How much heat will be transferred when 0.50 mol of TiO2 reacts with 1.60 mol of HCL according to the following equation? TiO2(s)+4HCL(g)->TiCl4(I)+2H2O(g) ?H=-67 kJ
Briefly describe aristotles ethical theory : What is Hobbes account of human nature and the argument of human nature. describe hobbes argument for why we should be moral. briefly describe Aristotle's ethical What argument does Hobbes give for why we would agree to erect an absolute sovereign?
Define why the sugar would cause the ice cubes to melt : Explain in detail why the sugar would cause the ice cubes to melt while it causes the temperature to drop. Is this related to freezing point depression? please explain.
Find how far has it moved in this time interval : A proton accelerates from rest in a uniform electric ?eld of 677 N/C. At some later time, its speed is 9.4 × 10 5 m/s. how far has it moved in this time interval
Calculate the target cost for maintaining current market : Calculate the target cost for maintaining current market share and profitability.
Find the magnitude of the net torque applied to the rod : A long, thin rod (length = 5.0 m) lies along the x axis, with its midpoint at the origin. In a vacuum, a +6.0C point charge is fixed to one end of the rod, and a -6.0C point charge is fixed to the other end. find the magnitude of the net torque app..
Explain what is the ph of a solution made of nh3 : What is the pH of a solution made of 10 mL of 0.1 M Nh3 (aq) (K = 1.8 X 10^-5) when mixed with 10 mL of 0.1 M NH4Cl
What is the coefficient of dynamic friction : You are working in a shoe test lab measuring the coefficient of friction for tennis shoes on a variety of surfaces. What is the coefficient of dynamic friction between the shoe and the material
Describe hobbes argument for why we should be moral : Describe Hobbes argument for why we should be moral. Remember to emphasize his account of human nature and the argument of human nature and the argument he gives for why we would agree to erect an absolute sovereign?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare journal entries to record events-debt service funds

a) Prepare journal entries to record the events above in the debt service fund. b) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2008

  The modified accelerated cost recovery system macrs

the modified accelerated cost recovery system macrs specifies which of the following depreciation methods for land?a.

  From the e-activity take two positions and describe how the

from the e-activity take two positions and explain how the trade agreement both helps and hurts the u.s.

  What is the recognized gain or loss

Question 9. (TCO 6) Judy exchanges a rental house at the beach with an adjusted basis of $165,000 and a fair market value of $150,000 for a rental house at the mountains with a fair market value of $100,000 and cash of $50,000. What is the reco..

  Price earnings ratio on common stock

Orchard"s net income for the year ended December 31 was $50,000. The yearly preferred dividend was declared. No capital stock transactions occurred. What was the price earnings ratio on Orchard"s common stock at December 31?

  1nbspnbspnbspnbspnbsp the following items were among those

1nbspnbspnbspnbspnbsp the following items were among those that were reported on dye co.s income statement for the year

  A major drug company anticipates that in future years it

a major drug company anticipates that in future years it could be involved in litigation regarding perceived side

  Corporation involved in agricultural production

Corporation involved in agricultural production

  Should navinow account for the contingent payments

Should NaviNow account for the contingent payments promised to the former owners of Traffic Eye as consideration transferred in the acquisition or as compensation expense to employees?

  Doubts about the appropriate accounting treatment

The accountant preparing the income statement for Bakersfield, Inc. had some doubts about the appropriate accounting treatment of the seven items listed below during the fiscal year ending December 31, 2010. Assume a tax rate of 40 percent.

  Stock in red corporation

On September 3, 2009, Able purchased S 1244 stock in Red Corporation for $6,000. On December 31, 2009 the stock was worth $8,500. On August 15,2010 Able was notified that the stock was worthless. How should able report this item on his 2009 and 20..

  When is the termination effective

The corporation issues the stock to Sid on September 13, 2010, to raise additional equity capital. Sid owns no other Orlando stock.a. Does Orlando's S election terminate? If so, when is the termination effective?

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