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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?
even after preparing BRS why does balance as per cash book and balance as per pass book do not tally?
using the break-even equations to solve for price and variable cost per unit andromeda company's break-even point is 2,400 units. variable cost per unit is $42; total costs are 6
Accounting conventions The phrase 'convention' is used to signify customs or ethnicity as a guide to the research of accounting statements. A variety of accounting conventions
Q. Explain about accounting applications? Early on accounting applications were in accounts receivable, payroll, accounts payable, and inventory. Within some years programs exi
Profitability refers to a company's ability to obtain profits and positive cash flows and to its ability to obtain an adequate return on invested capital or a company's ability to
assignments
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how do we credit debit cash received from owner
i have an assignment fro perdisco platform managing general entries of basic accounts will u guys be able to help with it
Business is an activity performed with the only intention of earning profit. The activity may differ according to the scope and volume.
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