A company''s sales volume averages 4,000 units per year, Accounting Basics

Assignment Help:

A company’s sales volume averages 4,000 units per year. 
Recently, its main competitor reduced the price of its product to $48. 
The company expects sales to drop dramatically unless it matches the competitor's price. 

In addition, the current profit per unit must be maintained. 
Information about the product (for production of 4,000) is as follows. 

Standard Quantity Actual Quantity Actual Cost 
Materials (pounds) 5,800 6,000 $60,000 
Labor (hours) 1,800 2,000 $20,000 
Setups (hours) 0 225 $8,000 
Material handling (moves) 0 400 $5,000 
Warranties (number repaired) 0 300 $15,000 


Required 
a. Calculate the target cost for maintaining current market share and profitability. 
b. Calculate the non-value-added cost per unit. 
c. If non-value-added costs can be reduced to zero, can the target cost be achieved?


Related Discussions:- A company''s sales volume averages 4,000 units per year

Illustrate a simple accounting system, Q. Illustrate a simple accounting sy...

Q. Illustrate a simple accounting system? James Stevens was captivating an accounting course at State University. as well he was helping companies find accounting systems that

Accounting, I purchased equipment for 3,000 but only paid 1,000 of it and p...

I purchased equipment for 3,000 but only paid 1,000 of it and put rest of it on an account. how would I put that into a asset=liabilities+ owns equity equation?

Word problem, a 50 petty cash fund has cash of 20 and valid receipts for 40...

a 50 petty cash fund has cash of 20 and valid receipts for 40. The entry to replenish the fund would include a

Cash flow liquidity ratios, Liquidity refers to a company's cash position, ...

Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business.

Determining needed adjustments, Determining needed adjustments Adjustme...

Determining needed adjustments Adjustments are required since certain changes take place during the accounting period. As time passes, although, the value of the asset is consu

What is classified balance sheet, Q. What is classified balance sheet? ...

Q. What is classified balance sheet? The balance sheets we presented thus far have been unclassified balance sheets. An unclassified balance sheet has three major categories li

Internal audit, Accounting is a significant service activity in business an...

Accounting is a significant service activity in business and is concerned along with collecting, evaluating, communicating and recording the results of past events. The history of

The comparative statements of lucille company are presented, The comparativ...

The comparative statements of Lucille Company are presented here. LUCILLE COMPANY Income Statements For the Years Ended December 31 First number are 2012 2012 then 2011

Explain periodicity assumption of accounting, Q. Explain Periodicity assump...

Q. Explain Periodicity assumption of accounting? As-per to the periodicity (time periods) assumption accountants divide an entity's life into months or years to report its econ

Write Your Message!

Captcha
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