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Goshia [24]
2 years ago
13

Aguilar Company is a priceminus−taker and uses target pricing. Refer to the following​ information: Production volume 601 comma

000601,000 units per year Market price $ 30$30 per unit Desired operating income 1616​% of total assets Total assets $ 13 comma 700 comma 000$13,700,000 Variable cost per unit $ 19$19 per unit Fixed cost per year $ 5 comma 400 comma 000$5,400,000 per year With the current cost​ structure, Aguilar cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be​ reduced, what are the target variable costs per unit per​ year? Assume all units produced are sold.​ (Round your answer to the nearest​ cent.)
Business
1 answer:
Scrat [10]2 years ago
8 0

Answer:

Target variable costs/ unit /year = $17.37

Explanation:

We reverse work this to get to target variable costs,

First lets summarize the data,

Production = 601,000 units

Price = $30

Variable cost = $19

Fixed Costs= $5,400,000

Desired operating income @ 16% = (0.16*13,700,000) = $2,192,000

We reverse work this as,

Sales (601,000*30)                          18,030,000

Less Variable costs(GP - Sales)       10,438,000

Gross Profit (FC + Profit)                   7,592,000

Less Fixed Costs                               5,400,000

Profit                                                    2,192,000

Variable costs/ unit /year = 10,438,000 / 601,000 = $17.37/unit

Hope that helps.

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Kitty [74]

Answer:

Yes

Explanation:

In the context, it is given that I am working as a manager in a financial planning office. One of my employees posted in the twitter that he need $ 500 to pay for his house rent for the month.

I would call the employee and would ask him to remove the post from the social media account as it might hamper the business of our company and sends a negative signal to the customers about the efficiency of the employees.

If the employees of the financial planning office cannot plan his spending and savings, then how the customers will have faith that our office will help them plan their money. It will have a negative effect to our reputation of the company and so I will ask him to remove it form the social media account and prevent anybody from doing this in the future.

7 0
3 years ago
Prepare general journal entries to record the following transactions for the Harris
e-lub [12.9K]

31/12/2013 bad debts expense  800$

                                      Provision for bad debt expense    800$

                       Provision for bad debt    60$

                                                                Debter   60$

                        Provision for bad debt   75$

                                                          Debter   75$

                        Provision for bad debt  45$

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7 0
3 years ago
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An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider; (16-2
jekas [21]

An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider a venture capital .

Option D

<u>Explanation: </u>

Venture capital (VC) is a method of funding that is made available to micro, early-stage and developing businesses by corporations or funds with a high potential for success or development (within employee numbers, annual income, or both).

Example:

Pepperfry, India's biggest furniture e-market brought up USD 100 million in a New session funding led by Goldman Sachs and Zodius Technology Fund. Pepper fry is expanding its emissions by adding to its increasing fleet of supply automobiles in Level III and Level IV cities.

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3 years ago
What is another term for liability?<br> A. asset<br> B. notes<br> C. debt<br> D. accounts
Fiesta28 [93]

Answer:

Another term for liability is debt, because both of these terms are accountable for money charges and assist needed :3

Explanation:

:3

6 0
3 years ago
JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts.
Strike441 [17]

Answer:

a)

Annual demand = 75000 = D

S = ordering cost/set up cost = $53

d = daily demand = 75000/250 = 300

h = holding cost per unit per year = $25

p = Daily production rate = 320

optimal size of the production run =EPQ = sqrt((2*D*S)/(h*(1-(d/p))))

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b)

maximum inventory = EPQ*(1 - (d/p))

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c)

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d)

Holding cost with EPQ = 2255.66 = 70.49*25 = 1762.25

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Holding cost with EPQ = 500, holding cost (31.25/2)*25 = 390.625

Savings = 1762.25 - 390.625 = 1371.625

6 0
3 years ago
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