User Account

All Pages

Calculate the new selling price

Assignment Help Cost Accounting
Reference no: EM132048604

The new CEO of Radco Manufacturing has asked for a variety of information about the operations of the firm from last year. The CEO is given the following information, but with some data missing:

Total sales revenue                             ?

Number of units produced and sold   500,000 units

Selling price                                       ?

Operating income                               $195,000

Total investment in assets                   $2,000,000

Variable cost per unit                         $3.75

Fixed costs for the year                      $3,000,000

Requirements:

a. Find (i) total sales revenue, (ii) selling price, (ii) rate of return on investment, and (iv) markup percentage on full cost for this produce.

b. The new CEO has a plan to reduce fixed costs by $200,000 and variable costs by $0.60 per unit while continuing to produce and sell 500,000 units. Using the same markup percentage as in Requirement a, calculate the new selling price.

Reference no: EM132048604

Questions Cloud

Prepare a physical flow schedule : Prepare a physical flow schedule. Compute equivalent units using the weighted average method.
Implementation of strategic cost management principles : It is suggested that the effective adoption and implementation of strategic cost management principles and techniques to the value chain
Why the owner assumption that total unit cost : Explain why the owner's assumption that "total unit cost (including all appropriate resources) is proportional to direct materials cost" is not a safe assumptio
What potential might there be for bringing boards more : We've spent a lot of time on the issues of streamlining Finance operations and the CFO's evolving role in developing strategy.
Calculate the new selling price : Using the same markup percentage as in Requirement a, calculate the new selling price.
What is the present value of a payment in one year : What is the present value of a $290 payment in one year when the discount rate is 7 percent? (Round your answer to 2 decimal places.)
Idea of developing a special line of gourmet pasta : Tim's Delicatessen is entertaining the idea of developing a special line of gourmet pasta sauce made with sundries tomatoes, mushrooms and truffle oil.
What is the present value of the second option : You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements.
Improved cost information : We just went through a process of looking through our costs in excruciating detail. We were actually selling one brand, Nut Ale, below cost.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Cost accounting assignment

Evaluate Method of measuring costs associated with production, budgeting process, normal job-order costing system , master budget, cycle time.

  Prepare the journal entries

Prepare the journal entries to record the bond issue and interest expense.

  Advise as to the liability of all the parties

Write a report on given case study and Advise as to the liability of ALL the parties both under common law and the Corporations Law.

  Prepare revenues budget

Prepare Revenues budget and Production budget in units

  Effect of exchange rate changes on cash and cash

Effect of exchange rate changes on cash and cash

  Corporate governance

You are to reflect on how this case of China Sky relates to what the arguments for and against allowing audit firm partners and/or employees to join audit committees.

  Cost-benefit analysis

A cost-benefit analysis of electronic medical records in primary care

  Non-annual interest rates and annuities

Theory of Interest- Non-annual interest rates and annuities

  Job costing in service organizations

How is job costing in service organizations different from job costing in manufacturing environments?

  Accounting for bad debt expense

Accounting for bad debt expense

  Accounting and partnership problems

Accounting and Partnership problems

  Development of relevant cash flows

Development of relevant cash flows - Cost estimating and financial analysis

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