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Sav [38]
3 years ago
7

Derek's company was bidding on the construction of a new penguin display at a world-famous zoo. when putting together his bid, d

erek began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. the result would be the cost of production. for example: if price to zoo = $6 million, and company profit margin = $2 million, the cost to produce cannot exceed $4 million. [$6 million - $2 million = $4 million.] the demand-based pricing strategy in this example is called _________.
Business
1 answer:
Marina CMI [18]3 years ago
7 0
<span>Derek's company was bidding on the construction of a new penguin display at a world-famous zoo. when putting together his bid, derek began by determining what the zoo would be willing to pay for the structure, and then subtracting a reasonable profit for the company. the result would be the cost of production. for example: if price to zoo = $6 million, and company profit margin = $2 million, the cost to produce cannot exceed $4 million. [$6 million - $2 million = $4 million.] the demand-based pricing strategy in this example is called target costing.

</span><span>Target costing is an approach to determine a product's life-cycle cost which should be sufficient to develop specified functionality and quality, while ensuring its desired profit. It involves setting a target cost by subtracting a desired profit margin from a competitive market price.</span>
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Concord Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on
Drupady [299]

Answer:

Sales price variance= $10,596.6 unfavorable

Explanation:

Giving the following information:

The following static budget based on sales of 1,820 kits was prepared for the year.

Sales $87,000

Assume that Concord Sports sold 1,827 volleyball kits during the year for $42 per kit.

First, we need to calculate the standard selling price:

Standard selling price= 87,000/1,820= $47.80

The sales price variance is calculated as follow:

Sales price variance= actual sales revenue - actual sales at the standard price

Sales price variance= (1,827*42) - (1,827*47.8)= $10,596.6 unfavorable

4 0
3 years ago
Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four sh
jolli1 [7]

Answer:

y=160.9

Explanation:

<u>Linear Modeling</u>

Models are an important part of the study of a variety of natural phenomena in a great number of fields like science, health, business, human behavior, economics, among many others.

Once a model is determined, it can be used to estimate future values of important variables which in turn can help people to make decisions.

It has been determined a model that relates the amount of term life insurance a family of four should have with the current age of the head of the household. That model is

y=165-0.1x

we are required to estimate the amount of term life insurance to recommend to a family of four when the head of the household is x=41 years old. Let's plug in the given value in the equation

y=165-0.1\cdot 41=165-4.1=160.9

\boxed{y=160.9}

7 0
2 years ago
A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per
Ipatiy [6.2K]

Answer:

$3200 favorable

Explanation:

We have given range of number of production = 40000 units

So average of number of units =\frac{35000+45000}{2}=40000

Variable cost = $2 per unit

So total variable cost = 40000×$2 = $80000

Fixed overhead = $72000

Budgeted overhead for actual production = Variable overhead +Fixed overhead  = $80000+$72000 = $152000

Actual total overhead cost = $148,800

Total overhead controllable cost variance = Budgeted overhead - Actual overhead

= $152,000 - $148,800 = $3,200 favorable.

6 0
3 years ago
Secondary data is often gathered primary data
AlexFokin [52]

Answer:

Is often gathered BEFORE primary data

Explanation:

:)

7 0
2 years ago
Read 2 more answers
Industrialized former colonial states that dominate the world economic system are?
Verizon [17]
Industrialized former colonial states that dominate the world economic system: Core Countries
5 0
1 year ago
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