User Account

All Pages

What should be the selling price

Assignment Help Accounting Basics
Reference no: EM132241062

Question - Hat Tricks Company (HTC) is a Buffalo, New York, manufacturer of hats and gloves. Recently, the company purchased a new machine to aid in producing the hat product lines. Production efficiency on the new machine increases with the workforce experience. It has been shown that as cumulative output on the new machine increases, average labor time per unit decreases up to the production of at least 3,200 units. As HTC's cumulative output doubles from a base of 100 units produced, the cumulative average labor time per unit declines by a learning rate of 80%.

HTC has developed a new style of men's hat to be produced on the new machine. One hundred of these hats can be produced in a total of 20 labor hours. All other direct costs to produce each hat are $16 per hat, excluding direct labor cost. Direct labor cost per hour is $45. Fixed costs are $8,000 per month, and HTC has the capacity to produce 3,200 hats per month.

Required: HTC plans to set the selling price for the new men's hat at 200% of direct production cost. If the company is planning to sell 100 hats, what is the selling price? If the plan is to sell 800 hats, what should be the selling price?

Reference no: EM132241062

Questions Cloud

Discuss about emotional intelligence and strategic thinking : The final paper will include an assessment of a business entity or organization with which you are familiar.
How is business events captured for reporting : Principles and concepts keep many companies around the world well informed of their financial standing: How is business events captured for reporting
Discuss the current issues in our everyday lives : Each student is responsible for finding an article from the Wall Street Journal that relates to agricultural policy or trade and writing a short review.
How will the industry change in the next five years : How will the industry change in the next five years? What will be different?
What should be the selling price : If the company is planning to sell 100 hats, what is the selling price? If the plan is to sell 800 hats, what should be the selling price
Develop a first-cut sequence diagram : Develop a first-cut sequence diagram that only includes the actor and problem domain classes.
Develop a personal action plan using given information : To plan for personal development, you must first assess your readiness for successful consulting roles. Through a reflective process of self-assessment.
Recommendation on an initial workforce analytics project : HRM 0128 Measuring Human Resource Efficiency and Effectiveness - University of Manitoba - Explain the rationale for your choice including risks and costs
A description of the state-of-the-art in your technology : A description of the state-of-the-art in your technology, a discussion of where the sources that you read believe the technology is heading in the near future.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Differences in financial accounting practices

1. Identify the reasons for differences in financial accounting practices within Europe. 2. Do all European countries adopt the principle of the true and fair view?

  Tyler smith has worked in an upholstery shop for 10 years

tyler smith has worked in an upholstery shop for 10 years. last year tylers wages were 20000. lately tyler has been

  Problem related to pension asset

A pension asset is reported when: a. the accumulated benefit obligation exceeds the fair value of pension plan assets. b. the accumulated benefit obligation exceeds the fair value of pension plan assets, but a prior service cost exists.

  What is the net present value and IRR of the investment

The working capital will be released at the end of the project. The investment will last 7 years. What is the net present value and IRR of the investment

  Prepare the stockholder equity section of balance sheet

Half of the preferred stock was issued at a price of $103 per share, Prepare the stockholder's equity section of the company's balance sheet

  This portion of the continuous problem continues the

this portion of the continuous problem continues the general fund and special revenue fund examples by requiring the

  Prepare the closing entries for the temporary accounts

The trial balances shown below are before and after adjustment for Ryan Company at the end of its fiscal year.

  Calculate the missing costs

Question - High-low method-missing amounts. Calculate the cost formula for mixed cost using the high-low method

  Why do you believe it is called elastic

Describe what you find. Why do you believe it is called elastic?

  Record the issuance of the purchase orders and contracts

Record the issuance of the purchase orders and contracts. Calculate the amount of budgeted but unrealized revenue in total and from each source as of July

  What do the points on the light curve represent

Summarize briefly, in your own words, what Planet Hunters is doing: Describe what the x and y axes on the plot represent

  Average investor understand the difference

Why is it important to report discontinued operations or extraordinary items separately from income from continuing operations? Does the average investor understand the difference?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd