What is the maximum cost per unit that can be incurred to

Assignment Help Accounting Basics

Reference no: EM13569188

Net sales for the year were $1,200,000 and cost of goods sold was $876,000 for the company's existing products. A new product is presently under development and will have an expected selling price of not more than $71 per unit in order to remain competitive with similar products in the marketplace.

a) Calculate the gross profit and the gross profit ratio of the year

b) What is the maximum cost per unit that can be incurred to manufacture the new product so that the product can be priced competitively and will not result in a reduction to the company's gross profit ratio?

Reference no: EM13569188

Questions Cloud

What is your estimate of the current stock price what is : sully corp. currently has an eps of 2.90 and the benchmark pe for the company is 28. earnings are expected to grow at 5

With the increasing use of technology in the workplace : with the increasing use of technology in the workplace determine if workplace security is getting easier or more

Selling general and administrative expenses were 169400 net : selling general and administrative expenses were 169400 net sales were 770000 interest expense was 18500 research and

Se wants to know the effect of a switch from : barbara simpson is a sell-side analyst with smith riccardi securities. simpson covers the pharmaceutical industry. one

What is the maximum cost per unit that can be incurred to : net sales for the year were 1200000 and cost of goods sold was 876000 for the companys existing products. a new product

Assess the initiatives methods and ways the hr department : assess the initiatives methods and ways the hr department can address employee well-being to determine at least three

The letter of credit had an option for an extension for up : on january 15 2013 inc. which has a march 31 year-end entered into a transaction to sell the land building that

The economic downturn has caused several companies to lay : the economic downturn has caused several companies to lay off workers leaving those workers who remain to do the work

Night hawk co issued 13-year bonds two years ago at a : night hawk co. issued 13-year bonds two years ago at a coupon rate of 9.8 percent. the bonds make semiannual payments.

User Account

All Pages