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barxatty [35]
3 years ago
12

Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $4

8 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer’s current full cost for the product is $44 per unit. 26. The target cost of the company’s product is_____
(A) $44
(B) $42
(C) $43
(D) $40
Business
1 answer:
Marrrta [24]3 years ago
8 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Selling price per unit = $48

Desired profit margin on sales = 12.5%

Flyer’s current full cost for the product = $44 per unit

Profit = Selling price × profit margin

         = $48 × 12.5%

         = $6

Target cost of unit = Selling price - Profit

                               = $48 - $6

                               = $42

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Answer:

8 years

Explanation:

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First, we will calculate annual payback or cash inflow.

Annual payback= (cash\ inflow - cash\ outflow)

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Now computing cash payback period.

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∴ Cash payback period is 8 years.

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3 years ago
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info graphics

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5 0
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A broker answered a call. A prospective buyer wants to see the home he drove by over the weekend. Feeling uncomfortable; for saf
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Onyemah Corporation uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month
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43,240 units

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<u>Calculation of equivalent units of production for conversion costs</u>

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