Answer:
Target costing does not begin with the determination of the cost of the product and then focusing on developing ways to sell the product at a price that will enable the company to achieve its desired profit margin.
The correct answer is B
Explanation:
In target costing, the company does not determine the price because the price is determined by the market. Target costing begins with determining the target profit. Then, the company deducts the target profit from the market price in order to obtain the target cost.
Explanation:
The cross-price elasticity formula is:
CPE= Δ%q of good A/ Δ%p of good B
The CPE of penguin patties and raskels is:
CPE= -22%/-20%
CPE= 1.1
A positive CPE means that both good are substitutes; often, penguin patties take the place of raskels. An increase in price of penguin patties will affect positively the quantity demanded for raskels.
The CPE of penguin patties and kipples:
CPE= 7%/-20%
CPE=-0.35
A negative CPE means that both goods are complementary, which means that consumers will likely consume them together. An increase in price of penguin patties will affect negatively de quantity demanded for kipples.
Complementary goods should be advertise together because both could be positively benefited by advertising. If the demand for penguin patties increases, it is probable that the demand for patties increases too. If you advertise substitute goods, people will always prefer one, then the advertising will only be effective or for penguin patties or for raskels.
Answer:
a. 100 units are ordered
b. Minimum Total annual cost = 80090
Explanation:
Given that,
D=2900.
C = $30 IF q<100
= $27 IF 100<Q<499.
= $26 IF Q>500.
C(H) = $30
C(O) = $10.
EOQ = √(2*D*C(O)/C(H))
= √( 2*2900*10/30)
= √( 1933.3333)
= 43.97
TAC if 44 units are ordered = (2*D*C(O)*C(H))+D*C
= 2*2900*10*30+ 2900*30
= 1319.09+ 87000 = 88319.09
TAC if 100 units are ordered = 2900/100*10+ 100/2*30+ 2900*27
= 29*10+ 50*30+2900*27
= 290+1500+78300
= 1790 + 78300 = 80090
if 500 units are ordered = 2900/500*10+ 500/2*30+2900*26
= 58+ 7500+75400= 82958.
∴ we get
100 units are ordered
Minimum Total annual cost = 80090.
I<span>f the container store owners/managers were to walk around and personally thank each employee for doing a good job, then this would be a motivating factor. This action exhibits a good environment as well for employees to foster as they're performances are acknowledged by their employers. if this goes on, this will inspire many employees to alleviate their status.</span>
Answer:
See the explanation below.
Explanation:
<u>Details Amount ($) </u>
Issued common stock 74,000
Dividend paid (13,000)
Settlement of note payable (120,000)
Treasury stock acquired <u> (120,000) </u>
Net cash flows from financing activities <u> (179,000) </u>
