Using activity based pricing marks up direct cost of goods

Assignment Help Financial Management
Reference no: EM13930202

A company using activity based pricing marks up the direct cost of goods by 0.25 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows : $7.30 per order placed; $2.50 per separate item ordered; $29.20 per return. A customer places 6 orders with a total direct cost of $2,800, orders 280 separate items, and makes 8 returns. What will the customer be charged?

Reference no: EM13930202

Questions Cloud

What is the aftertax cost of debt : Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 12 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? Wh..
The bookkeeper recorded a check written : The bookkeeper recorded a check written for $760 to pay for April's office supplies as $670 in the cash disbursements journal.
What is the companys target debt-equity ratio : Fama’s Llamas has a weighted average cost of capital of 10.9 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 8.9 percent. The tax rate is 38 percent. What is the company’s target debt−equity ratio?
Find the expected frequency for each category : Using the probabilities found in part (a), find the expected frequency for each category. Find the probability of a randomly selected subject belonging to each class. (Use class boundaries of 79.5, 95.5, 110.5, and 120.5.)
Using activity based pricing marks up direct cost of goods : A company using activity based pricing marks up the direct cost of goods by 0.25 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows : $7.30 per order placed; $2.50 per sep..
Key information about the selected organization : Introduction - Outline you're the purpose of this essay (about 100 words) and provide the key information about the selected organization (about 150 words), information includes products, markets, competitors, organizational goals and strategies e..
Maintain an internal growth rate-total asset turnover : A firm wishes to maintain an internal growth rate of 9 percent and a dividend payout ratio of 40 percent. The current profit margin is 6.2 percent and the firm uses no external financing sources. What must total asset turnover be?
Difference between risk assessment and mental status exam : What is the difference between a Risk Assessment (RA) and Mental Status Exam (MSE)-what are they?. What issues or concerns exist when it comes to using these assessments, along with the information that could be received.
Emergence of the virus and methods of control : Please note the focus of the essay is to study material related to the emergence of the virus and methods of control. very brief introduction to the virus discuss modes of transmission and what the known vectors for transmitting Chikungunya virus ..

Reviews

Write a Review

Financial Management Questions & Answers

  Supplier and argentinian buyer

XYZ Corporation has a British supplier and an Argentinian buyer. Transactions with his UK supplier are denominated in UK pounds and transactions with his Argentinian buyer are denominated in Argentinian pesos. The UK supplier gives XYZ 30 days from t..

  Mature companies with relatively predictable earning

If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? Mature companies with relatively predictable earning

  You are hired in the finance department at a large

you are hired in the finance department at a large metropolitan for-profit hospital. your duties are very important to

  About the weighted average cost of capital

The bonds yield 9.0 percent. The company also has 3.5 million shares of common stock outstanding. The stock has a beta of 1.6 and sells for $45 a share. The U.S. Treasury bill is yielding 6 percent and the market risk premium is 9 percent. Jack's tax..

  Roughly evenly split between credit and cash sales

On March 31, 2013, Mike's Bike Shop had an outstanding accounts receivable of $19,000. Mike's sales are roughly evenly split between credit and cash sales, with the credit sales collected half in the month after the sale and the remainder 2 months af..

  Forecasts of revenues over the lifetime of project

These are the forecasts of revenues over the lifetime of a project. Assume all cash flows occur at the end of the year. This hint is optional; you don't have to read this. This is only to help you, if you are confused by this hint just ignore it and ..

  Suppose your friend pat approaches you with a plan to get

suppose your friend pat approaches you with a plan to get in on the solar panel leasing business. pat has identified an

  Maximize the productivity

As a CEO you wish to maximize the productivity of your workers. You are thinking about providing your employees with smartphones so they can be readily available to clients and increase sales.

  Four-year project to improve production efficiency

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $495,000 is estimated to result in $194,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Ta..

  Investors expect the market rate of return

Investors expect the market rate of return this year to be 12%. A stock with a beta of 1.8 has an expected rate of return of 20%. If the market return this year turns out to be 9%, what is the rate of return on the stock?

  Calculate the payback period-the NPV and the IRR

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $748 per set and have a variable cost of $378 per set. The company has spent $168,000 for a marketing study that determined the company will sell 76,800 sets per year ..

  What is the approximate price of the leyda bond

Assume that Leyda Inc. has an outstanding bond with a 6.5% annual coupon, exactly 10 years to maturity, a par value of $1000 and a yield of 5%. The bond is convertible into 100 shares of Leyda stock, which is currently priced at $10.25 per share. Wha..

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