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kipiarov [429]
3 years ago
12

Back Bay Company is a price−taker and uses target pricing. Refer to the following​ information:Production volume602,000units per

yearMarket price$34per unitDesired operating income17​%of total assetsTotal assets$13,800,000What is the target full product cost per​ unit? (Round your answer to nearest​ cent.) Assume all units produced are sold.
Business
1 answer:
kirill115 [55]3 years ago
4 0

Answer: $30.10 per unit

Explanation:

Given that,

Production volume = 602,000 units per year

Market price = $34 per unit

Desired operating income = 17​% of total assets

Total assets = $13,800,000

Total income = 17% of Total assets

                      = 0.17 × $13,800,000

                      = $2,346,000

Total sales = Market price × Production volume

                  = $34 per unit × 602,000 units

                  = $20,468,000

Target full product cost in total for the year:

= Total sales - Total income

= $20,468,000 - $2,346,000

= $18,122,000

Target full product cost per​ unit = \frac{Target\ full\ product\ cost}{Production\ volume}

                                                      = \frac{18,122,000}{602,000}

                                                      = $30.10 per unit

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Answer:

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The Opportunity Cost of attending a 4 year college with full time schedule & living on campus would be the foregone income another student earns who works in an organization for those same number of hours for the same duration of 4 years and also the fees paid for those 4 years at the college which if would've been banked or invested would've yielded a return.

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8 0
3 years ago
Luciana is the first to offer a new product to customers in the local market and expects no competitors to emerge for at least t
storchak [24]

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skimming.

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3 years ago
The March 1 inventory of finished units at the Kay Company is 5,000. During March the company plans to sell 40,000 units and des
nordsb [41]

Answer:

C. 45,000 units

Explanation:

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Sales units

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Less:

Inventory of finished units March 1

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5 0
3 years ago
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Hello!

Working capital=current assets-current liabilities

Working capital=110000-50000
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Good luck!

6 0
3 years ago
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