How profitable will one-price be

Assignment Help Cost Accounting
Reference no: EM133152016

Question - Activity-Based Costing - One-Price is a new shipping company. Its customers will ship packages of any size and any weight anywhere around the world. To keep it simple, the company has decided to charge a single price to ship any package to any destination.

To determine that price, the company first estimated the costs of shipping all packages (large and small size, light and heavy weight, distant and close destinations). It then determined an average shipping cost per package by dividing the total shipping costs by the total number of packages. The company then added a profit margin to that average shipping cost per package for pricing.

Based on this costing information, how profitable will One-Price be? Explain why.

Reference no: EM133152016

Questions Cloud

What is the calculation for actual overhead for each job : Job A had 875 machine hours and job B had 4050 machine hours, what is the calculation for actual overhead for each job
Steps in the business analytics process sequential : Discuss the steps in the business analytics process sequential
Benefits and costs of flattening an organization : What are the benefits and costs of flattening an organization?
Result of international business and trade : Regional economic integration is one result of international business and trade and even global market, in this sense, are you in favor with it?
How profitable will one-price be : Activity-Based Costing - One-Price is a new shipping company. Based on this costing information, how profitable will One-Price be? Explain why
Comparison of three potential machines : Build me a set of requirements. if you so desire and then build me the specifications for that machine to include software and hardware.
Expensive fabrication machines : You are the director of operations for your company, and your vice president wants to expand production by adding new and more expensive fabrication machines.
Environmental and social considerations : What is the ethical considerations as well as environmental and social considerations when trying to implement a new safety program on a surface coal mine opera
How personality trait aligns : The text defines personality as "a person's relatively stable feelings, thoughts, and behavioral patterns" (Carpenter et al., 2010, p. 70); while values are "st

Reviews

Write a Review

Cost Accounting Questions & Answers

  Compute fun ships first and second year depreciation

Compute Fun Ships first and second year depreciation on the cruise ship using the methods - Straight-line

  Wwhat concept of denominator level capacity would you prefer

If the Austin Brewery plant manager gets a bonus based on operating income, what concept of denominator level capacity would you prefer to use?

  Should specs be simple but descriptive

Specs should be simple but descriptive. Specs. Should not be too "Tight" or too "Loose" there should be some margin of flexibility.True or False

  Average cost inventory costing methods

Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods.

  Journalize entries to record initial acquisition

Interest is paid semiannually on April 1 and October 1. On October 1, 2012, Dristol sold $20,000 of the bonds for 99 - Journalize entries to record initial acquisition of the bonds on April 1.

  Determine the labour costs

How Prepare calculations and provide detailed explanation for all relevant costs and irrelevant costs related to the urgent-order of Coved Ltd.

  What the target selling price for the television is

What The target selling price for this television is? Red Grass Company produces high definition television sets. Fixed cost per unit $250

  Should norman accept or reject the special order

Should Norman accept or reject the special order to pour 40 slabs for $2,250 each? Support your answer with appropriate computations.

  Costing systems and traditional overhead allocation systems

Show the main differences between ABC costing systems and traditional overhead allocation systems. Based on your knowledge and experience, which technique you prefer and why?

  How did starbuck management use decision making analysis

How did Starbucks' management use their decision making analysis in evaluating their outsourcing decisions? What is a relevant cost

  Define direct costs and indirect costs

Why do managers consider direct costs to be more accurate than indirect costs? What is a cost driver? Define direct costs and indirect costs.

  Compute odd wallow drinks break-even point in units

Odd Wallow Drinks is considering adding a new line of fruit juices to its merchandise products. Compute Odd Wallow Drinks break-even point in units

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!

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