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Target Costing
Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $700 each. An independent catalog company would handle sales for an annual fee of $1,000 plus $30 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $70 per unit.
If company management desires a return equal to 10 percent of the final selling price, what is the target unit cost? Round answer to the nearest cent. $Answer
Equipment was purchased for $30,000. It has a useful life of 5 years and a residual value of $4,000. Compute the balance of the Accumulated Depreciation account at the end of the second year.
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Jack acquires a new seven-year class asset on September 20, 2013, for $80,000. He placed the asset in service on October 5, 2013. He does not elect to expense any of the asset under SS179 or elect straight-line, cost recovery. He takes additional fir..
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The balance in Phillips Company's investment account on 31st December, 2003, was $54,000.
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question1. what is the organization type? describe this type of nonprofit.2. what is your organization mission?3. are
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question to evaluate the amount at which inventory could be reported on the 31st december year 1 balance sheet monroe
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