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Suppose you have just started a business to manufacture your newest invention, the photon gismo. Let's say you believe that after a few years on the market, photon gismos will sell for about $125. This allows for the introduction of similar devices by your competitors. Furthermore, let's say you want to make a profit of $25 on each gismo sold.
1. What is the target cost for the photon gismo?2. What is the target profit?3. What is the target price?
Wysocki Company pays its sales force a fixed salary plus a 5% commission on all sales. Explain why sales force costs would be considered a mixed cost.
dentify the cost implications of the spill and how best they might be recognized by BP (and others). Should the accountant take a positive approach or a normative approach when trying to quantify the costs?
City of Joseph Commercial Bank hired consultants to compute the costs of three products: checking accounts, personal loans, and the Gold visa card. The consultant identified the following activities, costs and activity drivers (annual data):
Compute the firm's current contribution margin ratio and break-even in revenues. Recalculate contribution margin ratio and breakeven in sales if new machine is leased. What is the firm's operating income supposing that the new machine is leased?
Evaluate net purchases at retail and net sales for the month of September
JungleGym, a best-selling toy has a selling price of $15. If the contribution margin ratio is 40% and if the fixed costs are $60,000, how many JungleGyms must the company sell to realize a profit of $450,000?
What are the major differences between job-order costing and process costing systems?
What kind of organization or company would employ Activity-based costing? What are the limitations of Activity-based costing?
Please define the cost allocation keys in sea transport business. Think about owning a ship, but are not operating it efficiently and effectively so that your costs are always much more than your revenues. What will be your solution? What if you d..
Mercy Greeting Cards Incorporated is starting a new business venture and are in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows: What is the total estimated life-cycle o..
Explain these objections to the accountant's convention cost-volume-profit model
Bello Corp. has annual sales of $50,735,000, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The company makes all purchases on credit and has always paid on the 30th day.
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