Airflow company sells a product in a competitive

Reference no: EM13570433

Airflow Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $28.00 per unit. Airflow management desires a profit equal to a 20% rate of return on invested assets of $1,400,000. They anticipate selling 50,000 units. Their current full cost per unit for the product is $25 per unit.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

(1) What is the amount of profit per unit?

(2) What is the target cost per unit if they meet the market dictated price and management's desired profit?

Reference no: EM13570433

Questions Cloud

Please answer each question one paragraph each last : please answer each question one paragraph each. last paragraph needs to be done with the information given.1 which

Jamaica corp is adding a new assembly line at a cost of 85 : jamaica corp. is adding a new assembly line at a cost of 8.5 million. the firm expects the project to generate cash

Prepare the journal entries needed on the books of bismarck : on july 31 2012 bismarck company engaged duval tooling company to construct a special-purpose piece of factory

Bill and mary plan to marry in december of 2012 bills : bill and mary plan to marry in december of 2012. bills salary is 32000 and he owns a residence. his itemized deductions

Airflow company sells a product in a competitive : airflow company sells a product in a competitive marketplace. market analysis indicates that their product would

Calculate the aftertax cost of debt under each of the : calculate the aftertax cost of debt under each of the following conditions6.0 yield with a 16 corporate tax rate12.6

Even though you could treat every single item above : chateau sneuti is a family owned winery in the bordeau region of france. harvesting season in early fall is the busy

Moore corporation follows a policy of a 10 depreciation : moore corporation follows a policy of a 10 depreciation charge per year on all machinery and a 5 depreciation charge

Your firm must raise capital immediately and debt will be : suppose you believe that the economy is just entering a recession. your firm must raise capital immediately and debt

User Account

All Pages