Answer:
$60
Explanation:
The computation of the target cost for the new widget is shown below:
Target selling price = $80
return on sales = 25%
Based on this
Profit per unit = 80 × 25%
= $20
Now
Target cost = Target selling price - Profit per unit
= $80 - $20
= $60
By deducting the profit per unit from the target selling price we can get the target cost and the same is applied and shown above i.e in the computation part
Answer:
e. 10.0%
Explanation:
Using the capital asset pricing model we have:
Required return = Rf + beta 
(Rm - Rf)
Where Rf = Risk free return
Rm = Market return
Beta = Beta coefficient
Provided,
Partridge Plastic Stock's information as:
Beta = 1.4
Required return = 13%
Risk free rate = 6%
Putting values in equation, we will get market rate of return
13% = 6% + 1.4 (Rm - 6%)
= Rm - 6%
5% = Rm - 6%
11% = Rm
Now putting this value in equation for information provided for Cleaver Motor's Stock
Required return = 6% + 0.8 (11% - 6%)
= 6% + 4%
= 10%
Answer: Option C
Explanation:
A. Achievement of organizational goals is the result for which the controlling process is initiated.
B. Taking corrective action is the second last step in controlling process.
C. Controlling process starts with the establishment of standards from which the actual performance will be compared.
D. Comparison is the second step in controlling process.
E. Identification will be done only after the comparison and detection of deficiencies in the process.
Answer:
Unitary production cost= $94
Explanation:
Giving the following information:
Variable costs per unit:
Direct materials $ 38
Direct labor $ 53
Variable manufacturing overhead $ 3
<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead). Variable selling and administrative expense is a period cost. </u>
Unitary production cost= 38 + 53 + 3
Unitary production cost= $94
It is not unethical nor illegal to offer incentives for customers to sign contracts with your company. If I were Ron, I would try and get the tickets and give them to the prospective client to build rapport and relationship. hopefully this will lead to a sell in the future.
