Solution-What is the target cost if target profit of sales

What is the target cost if target profit of sales must meet

Assignment Help Managerial Accounting

Reference no: EM132552384

Electronic Component Company (ECC) is a producer of high-end video and music equipment. ECC currently sells its top of the line "ECC" video player for a price of $250. It costs ECC $210 to make the player. ECC's main competitor is coming to market with a new video player that will sell for a price of $220. ECC feels that it must reduce its price to $220 in order to compete. The sales and marketing department of ECC believes the reduced price will cause sales to increase by 15%. ECC currently sells 200,000 video players per year.

Question 1: What is the target cost if target profit is 20% of sales and ECC must meet the competitive price of $220?

A) $168.50.

B) $176.00.

C) $184.25.

D) $190.00.

Reference no: EM132552384

Questions Cloud

Discuss two types of threats against mobile devices : Assignment - Applied Project. Mobile devices are highly vulnerable and can be exposed. Discuss two types of threats against mobile devices

What happens during the maturity phase : During the sales life cycle, which is an example of what happens during the maturity phase? Sales and price decline, as do the number of competitors.

What are the four basic types of attachment : What are the four basic types of attachment described by Bowlby and Ainsworth? Include effects on later life. What is the difference between instrumental.

What is the net realizable value : A hospital buys certain supplies for $50 each. The average markup is 100%. Additional selling costs are 25% of the total cost. What is the net realizable value?

What is the target cost if target profit of sales must meet : Electronic Component Company (ECC),What is the target cost if target profit is 20% of sales and ECC must meet the competitive price of $220?

Discuss the purpose and scope of uniform commercial code : Discuss the purpose, background information, and scope of the UCC (Uniform Commercial Code). Provide your argument on the advantages or disadvantages of the Act

How the expectation or stereotype related to the emotion : Briefly explain how the expectation or stereotype related to this emotion-the experience and expression of it-is different for each gender.

What scales of measurement are you using for each : Select a peer-reviewed empirical article. Read through method and measurement, and identify each measured variable according to the scale upon which it was.

The significance of equipment and system : You are the new Compliance and Accountability Manager for the mid-size company. During the first two weeks on the job, you have conducted several inspections on

User Account

All Pages

What is the target cost if target profit of sales must meet

Reference no: EM132552384

Reference no: EM132552384

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT