Answer:
$38.
Explanation:
Management perform Cost, Volume, and Profit (CVP) analysis to calculate break-even points, set target costs, and to set target profits. It helps them in formulating strategies effectively, reducing costs to generate maximum profit, and to utilize resources efficiently.
As we know that profit is the difference between sales and costs. So, the target cost can easily be calculated by re-arranging the profit equation which is given below;
Profit = Sales - Total Cost
⇒ Total / Target Cost = Sales - Profit
Simply put the figures in the above equation and it gives you;
Target cost = 53 - 15 = $38 OR 72% (38 / 53).
Note: It is more appropriate to state target profit on percentage basis. Here the percentage of target cost is 72%.
Answer: Apple and Nike are utilizing <u><em>Taper integration</em></u> to partially rely on outside-market firms while supporting their forward vertical integration strategy.
Tapered integration is a key word that initiated from organization hypothesis, referring to a concoction of vertical integration and industrial transaction.
<u><em>The correct option is (d) </em></u>
Answer:
they will actually experience 2 years of unemployment
Answer:
- $375 per mountain bicycle
- $3,350 per touring bicycle
Explanation:
1. Manufacturing overhead of each mountain bicycle:
= Total manufacturing overheads for mountain bicycles / Number of units
= 75,000 / 200
= $375 per mountain bicycle
2. Manufacturing costs of one touring bicycle
= Direct labor + Direct material + Manufacturing overhead per touring bicycle
= 700 + 2,200 + (180,000 / 400 units of touring bicycles)
= 700 + 2,200 + 450
= $3,350