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Nikolay [14]
3 years ago
10

Pedrotti Corporation would like to use target costing for a new product it is considering introducing. At a selling price of $40

per unit, management projects sales of 30,000 units. The new product would require an investment of $300,000. The desired return on investment is 16%. The target cost per unit is closest to: (Do not round intermediate calculations.)
Business
1 answer:
LiRa [457]3 years ago
6 0

Answer:

$38.40

Explanation:

Target Cost = Selling Price per Unit - Profit Margin per Unit

Here, Selling Price per Unit = $40

Profit Margin = 16% of the Investment in Product

Investment = $ 300,000

Profit Margin = 16% × 300,000

                      = $48,000

Number of Units Sales = 30,000 Units

Profit Margin per Unit:

= Profit Margin ÷ Number of Units Sales

= $48,000 ÷ 30,000

= $1.6

Therefore,

Target Cost per Unit:

= Selling Price per Unit - Profit Margin per Unit    

= $40.00 - $ 1.60

= $38.40

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5.7619441163552

But you should round it to the nearest hundredth which would be 5.76

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2 years ago
A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.suppleme
JulsSmile [24]

Answer:

A, supplementary

Explanation:

A supplementary service can be said to be an added service to an original service package.

That is, a supplementary service can be said to be an extra service or services that is embedded in a whole service.

For example, when you go to a tech store to have your hard drive replaced, a supplementary service such as general cleaning and routine check of your computer is included in the hard drive replacement service.

The main or core service is hard drive replacement while the supplementary service includes cleaning and routine check of other computer components.

Cheers.

4 0
3 years ago
Huggins Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $ 830 2 1,150 3 1,410 4 1,550 I
Rasek [7]

Answer:

$4,013.10.

$3,329.54.

Explanation:

If discount rate is 8%

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$768.52 + $985.94 + $1,119.30 + $1,139.30

$4,013.10

If discount rate is 16%

PV of Cash Flows :

($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)

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$3,329.54.

7 0
3 years ago
A manufacturing firm is deciding whether or not to invest in a new printer that needs an initial investment of $150,000. The inv
Yakvenalex [24]

Answer:

the net present value of the investment is

$15289,6

Explanation:

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VPN=150000+80000/(1+10%)++75000/(1+10%)>2    

   

VPN=-150000+72727+61983,4    

   

VPN=15289,6    

7 0
3 years ago
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pashok25 [27]

Answer:

D. both a and b

Explanation:

There are 3 stages to technological change:

1. Invention - this is when new technology is created or invented.

2. Innovation - this is application of new invention

3. Diffusion - diffusion is when knowledge and use of new technology spreads. Training is one of the ways through diffusion can occur. Therefore , training is an example of technological change.

I hope my answer helps you

4 0
3 years ago
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