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 in a Service Firm Alert Alarm Systems installs home security systems. Two of its systems, the ICU 100 and the ICU 900, have these characteristics:
Design Specifications
ICU 100
ICU 900
Cost Data
Video cameras
1
3
$150/ea.
Video monitors
$ 75/ea.
Motion detectors
5
8
$ 15/ea.
Floodlights
7
$ 8/ea.
Alarms
2
Wiring
700 ft.
1,100 ft.
$ 0.10/ft.
Installation
16 hrs.
26 hrs.
$ 20/hr.
The ICU 100 sells for $810 installed, and the ICU 900 sells for $1,520 installed.
Required:
1. What are the current profit margins on both systems?
2. Alert's management believes that it must drop the price on the ICU 100 to $750 and on the ICU 900 to $1,390 to remain competitive in the market. Recalculate profit margins for both products at these price levels.
3. Describe two ways that Alert could cut its costs to get the profit margins back to their original levels.
depreciation method had on net income for 2012 compared to the straight-line method. By how much would net income before taxes in 2012 be different if the straight-line method had been used for the entire time?
Calculate the ratio of each COQ category to revenues in each of the two years.
The impact on operating profit, would the rebate strategy to increase sales volume be a good trade-off for the company?
Compute operating profit for March and April 2012 using variable costing and reconcile and explain why the income was different each month using the two methods.
Identify the fixed and variable costs from the above and comment on the cost behaviour - Estimate the cost of goods manufactured and sold and prepare a revised income statement for the month.
Calculate the Net Present Value and Internal Rate of Return and company is considering the acquisition of equipment that would radically change its manufacturing process.
Find what is Justin's adjusted tax basis for his partnership interest immediately after the partnership is formed and evaluate what is the partnership's adjusted basis for the property contributed by Justin?
Compute the cost per equivalent unit for materials using the FIFO method - compute Costs per Equivalent Unit: Weighted-Average Method
Explain how Jason will deal with the VAT implications of buying goods from a VAT registered trader in another EU state. State the tax point for acquisitions of goods in the UK from other VAT registered businesses in the EU.
hand-made furniture company manufactures sofas for distribution to several major retail chains. the following costs are
What is the effect of transaction on this year's and next years income statement and income tax expense? Why and Heinen Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?
Physical access controls-only authorized employees should have physical access to the Warehouse and Shipping areas - Prompt investigation of customer complaints about shorted shipments
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