User Account

All Pages

Calculate the new price TIE must charge

Assignment Help Accounting Basics
Reference no: EM132903437

Question - TIE Industries makes starfighters for the Galactic Empire while ILM makes X- wing fighters for the New Republic. Smaller manufacturers make similar craft as well as custom starcraft. The major reseller of starcraft is WalStar GLC (Galacticly Limited Company). Both TIE and ILM spend heavily on advertising and each year come out with new versions of their top models.

A starfighter is expensive. Each one costs 32 billion galactic credits (BG's). in material plus 54 BG in labour. Another 10 BG in indirect production costs is charged to each starfighter.

Production this year is expected to be 500,000 starfighters and each one will sell for 150 BG.

Required -

a) TIE is owned by the Toyardians. The Board of Directors has asked you to discuss which approach to pricing they should use and why.

b) TIE wants to make a 36% margin on sales. Prior to starting production for the new year, disruptions in the supply of Unobtainium have caused material prices to increase to 36 BG for each starfighter. Calculate the new price TIE must charge to maintain its contribution margin percentage.

Reference no: EM132903437

Questions Cloud

List fifteen different combinations of primary light colors : List fifteen different combinations of the primary light colors. Mixing two or three of the three primary colors of light with varying degrees of intensity.
Calculate the AT-WACC : Calculate the AT-WACC with a 60% debt and 40% equity financing structure and then explain why this is or is not a viable investment for you as Angel Investor
Describe in the document must be able to meet the needs : Describe in the document must be able to meet the needs of the organization. Your work will be evaluated according to how well you met the organization's
What are the advantages of a private cloud : What are the advantages and disadvantages of a Private Cloud vs. a Public Cloud delivery model? When would you implement each and why?
Calculate the new price TIE must charge : TIE wants to make a 36% margin on sales. Calculate the new price TIE must charge to maintain its contribution margin percentage
Discuss the key data protection points that must be taken : Discuss the key data protection points that must be taken into consideration prior to a strategy plan and policy being established for a company
List the pros and cons of cloud-based data storage : List the pros and cons of cloud-based data storage. Describe how cloud-based data storage works. Define and describe a SAN. Define and describe NAS
What is the payback period : Julie Miller is evaluating a new project for her firm, Basket Wonders (BW). What is the Payback Period
What advice would you give the committee : From past experience, both companies produce jerseys of equivalent quality. What advice would you give the committee to help them decide

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd