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Bingel
12 days ago
8

Galla Inc. operates in a highly competitive market where the market price for its product is $181 per unit. Galla desires a $19

profit per unit. Galla expects to sell 6,100 units. Additional information is as follows: Variable product cost per unit $ 21 Variable administrative cost per unit 16 Total fixed overhead 56,000 Total fixed administrative 29,000
Using target costing, what is the target cost?
Business
1 answer:
Free_Kalibri [3.1K]12 days ago
7 0

Respuesta:

Objetivo de costo = Precio de mercado - Margen de beneficio deseado

                   = $181 - $19

                   = $162

Explicación:

El costo objetivo es la diferencia entre el precio de mercado competitivo y el margen de beneficio deseado. En el método de costo objetivo, el precio de mercado está fijado por las fuerzas del mercado. Se resta el margen de beneficio deseado del precio de mercado para obtener el costo objetivo.

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Scenario 13-1 Korie wants to start her own business making custom furniture. She can purchase a factory that costs $400,000. Kor
harina [3243]
The answer is C. $3,000.
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A large beer company previously had a yearly budget of $50 million per year for advertising but increased the budget to $60 mill
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4 0
1 month ago
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off
harina [3243]

Answer:

MARIN PRODUCTS

Sales after further processing

DBB-1 DBB-2 DBB-3

units sold 16,000 24,000 36,000

Revenue post-processing $1,040,000 $1,200,000 $2,700,000

Joint expenditure (757,895) (1,136,842) (1,705,263)

Individual processing cost (110,000) (44,000) (66,000)

Net profit 172,105 10,158 928,737

sale at split-off point

DBB-1 DBB-2 DBB-3

units sold 16,000 24,000 36,000

Sales revenue $400,000 $840,000 $1,980,000

Joint expenditure (757,895) (1,136,842) (1,705,263)

Net profit (357,895) (296,842) 274,737

Conclusion: All products should undergo further processing to enhance the company's profit margins

<pdistribution of="" joint="" cost="">

Cost per unit = $3,600,000/76,000 = $47.37

DBB-1 = $47.37*16,000 = $757,895

DBB-2 = $47.37*24,000 = $1,136,842

DBB-3 = $47.37*36,000 = $1,705,263

Explanation:

</pdistribution>
8 0
29 days ago
Great Skot expects to have cash receipts in June of $532,160. Skot’s cash disbursements in June are $581,720, including an inter
Katen [2951]

Answer:

a. $37,560

Explanation:

The ending cash balance of $40,000 = Cash at start of month $52,000 + cash inflows during June of $532,160 - cash outflows of $581,720 +  New borrowing

⇔ $40,000 = $2,440 + new borrowing

⇔ New borrowing becomes  $40,000 - $2,440 = $37,560

To maintain a cash balance of $40,000, Skot must borrow $37,560 starting with $52,000.

6 0
1 month ago
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