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Pachacha [2.7K]
3 years ago
6

Charter Corporation manufactures a single product that has a cost of $350. The company uses a 70% markup on cost to arrive at a

selling price of $595, which results in a price that virtually always exceeds that of the market leaders. If Charter changes to the approach known as target costing, the company will first: undertake a thorough study of competitors' prices. change the markup so that it is based on sales rather than based on cost. attempt to re-engineer its product. trim its $350 cost. reduce its 70% markup rate.
Business
1 answer:
Mkey [24]3 years ago
8 0

Answer:

trim its $350 cost.

Explanation:

Target costing starts in the final selling of a good and then the company deducts its desired markup. The result is the target cost of the product. The company then tries to cut production costs in order to reach that target cost.

E.g. the market price is $500

target cost = $500 / 1.7 = $294.12

the company will try to manufacture its product spending just $294.12 per unit

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Over the last 50 years, family income has become __________ in explaining the educational achievement gap
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3 years ago
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return fro
lutik1710 [3]

Answer:

A. NPV for A= $61,658.06

NPV  for B = $25,006.15

B.  1.36

1.17

Project A

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calcuated using a financial calculator

for project A :

Cash flow in

Year 0 = $(172,325)

Year 1 41,000

Year 2 47,000

Year 3 85,295

Year 4 86,400

Year 5 56,000

I = 10%

NPV = $61,658.06

for project B

year 0 = $ (145,960)

Cash flow in

Year 1  27,000

Year 2  52,000

Year 3 50,000  

Year 4 71,000

Year 5  28,000

I = 10%

NPV = $25,006.15

profitability index = 1 + NPV / Initial investment

for project A, PI = $61,658.06 / 172,325 = 1.36

For project B, PI = $25,006.15 / 145,960 = 1.17

The project with the greater NPV and PI should be chosen. this is project A.

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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If you were to start a business, which ownership form would you choose? What factors might affect your choice?
Ivenika [448]

Answer:

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Reasons why I will choose Sole Proprietorship

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* All profits (and loss) will belong to me, means the more I work harder, the more return I (alone) will get.

* I can make all the decisions by myself, without the interference of any other person.

* I can expand my business as per my convenience and hard work, if I succeed I can eat all the fruits myself.

* I can grow my business as much I want.

* No one will be my boss, I will be setting my own working hours and work load etc.

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When bonds are converted into common stock____.
nexus9112 [7]

Answer:

When bonds are converted into common stock____.

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