Project #94712 - finance and accounting

Tory Company sells a single product. Troy estimates demand and costs at various activity levels as follows:

Units Sold

Price

Total Variable Costs

Fixed Costs

120,000

$48

$3,000,000

$1,000,000

149,000

$45

$3,510,000

$1,000,000

160,000

$40

$4,000,000

$1,000,000

180,000

$35

$4,500,000

$1,000,000

200,000

$30

$5,000,000

$1,000,000

 

How much profit will Troy have if a price of $45 is charged?

 

The Falling Snow Company is considering production of a lighted world globe that the company would price at a markup of 0.30 above full cost. Management estimates that the variable cost of the globe will be $60 per unit and fixed costs per year will be $240,000.

 

Assuming sales of 1,200 units, what is the full selling price of a globe with a 0.30 markup?

A company believes it can sell 5,300,000 of its proposed new optical mouse at a price of $11.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the target variable cost per mouse?

Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:

 
 

Order processing cost per order

 $7

   

Additional costs if order must be expedited (rushed)

 $9.50

   

 

   

Customer technical support calls (per call)

 $12

   

Relationship management costs (per customer per year)

 $1200

   

 

   

In addition to these costs, product costs amount to  75% of Sales.

 

 

In the prior year, Wizard had the following experience with one of its customers, Chester Company:

 

Sales

 $15,500

   

Number of orders

 160

   

Percent of orders marked rush

 70%

   

Calls to technical support

 80

   

 

 

Required:

 

Calculate the profitability of the Chester Company account.

 

 

When a firm adds a predetermined percentage to the cost of its product for pricing purposes, it is called:

PowerDrive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was:

 

 

 

Direct material

$625,000

Direct labor

375,000

Variable overhead

125,000

Fixed overhead

1,500,000

Total cost

$2,625,000

 

 

At the start of the current year, the company received an order for 3,600 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company’s first international order. On the other hand, the company in China is willing to pay only $130 per unit.

 

What will be the effect on profit of accepting the order?

Another name for menu-based pricing is:

A company has $45 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 108,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

Subject Mathematics
Due By (Pacific Time) 11/20/2015 09:21 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy