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Svetach [21]
4 years ago
7

Rocky River Company is a pricetaker and uses target pricing. Refer to the following information:Production volume 602,000​ units

per yearMarket price $34​ per unitDesired operating income 17% of total assetsTotal assets $13,900,000​ ​What is the target full product cost per unit? (Round your answer to nearest cent.) Assume all units produced are sold.a. $34.00b. $30.07c. $5.78d. $28.22
Business
1 answer:
ladessa [460]4 years ago
7 0

Answer:

$30.07

Explanation:

Rocky river company uses target pricing

The production volume is 602,000 units

The market price is $34 per unit

The total assets is $13,900,000

The desired operating income is 17% of the total assets

= 17/100 × 13,900,000

= 0.17×13,900,000

= 2,363,000

The first step is to calculate the sales value

= 602,000 ×34

= 20,468,000

The total cost can be calculated as follows

= Sales value-desired operating income

= 20,468,000-2,363,000

= 18,105,000

Therefore the target full product cost per unit can be calculated as follows

= Total cost/production volume

= 18,105,000/602,000

= $30.07

Hence the full target product cost per unit is $30.07

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satisficing

Explanation:

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A company purchases and uses 40000 gallons of materials for which they paid $3 a gallon. The materials price variance was $90000
iogann1982 [59]

Answer:

the standard price per gallon is $5.25

Explanation:

the computation of the standard price per gallon is given below;

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Hence, the standard price per gallon is $5.25

The same should be considered

4 0
3 years ago
Spielberg Inc. signed a $170,000 noninterest-bearing note due in five years from a production company eager to do business. Comp
GaryK [48]

Answer:

$100,890

Explanation:

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7 0
3 years ago
EA3.
icang [17]

Answer:

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Explanation:

For computing the equivalent units of ending work in process for materials and conversion cost, first we have to determine the ending work in process units which is shown below:

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EastWind [94]

Answer:

Add a personal letter to your offer.

Explanation:

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