On point inc is interested in producing and selling a

Assignment Help Accounting Basics

Reference no: EM13600364

On Point, Inc., is interested in producing and selling a deluxe electric pencil sharpener. Market research indicates that customers are willing to pay $40 for such a sharpener and that 20,000 units could be sold each year at this price. The cost to produce the sharpener is currently estimated to be $34.

a. If On Point requires a 16 percent return on sales to undertake production of a product, what is the target cost for the new pencil sharpener?

b. If a competitor sells basically the same sharpener for $36, what would On Point's target cost be to maintain a 16 percent return on sales?

Reference no: EM13600364

Questions Cloud

Mcnamee juices sells products in the health-food industry : mcnamee juices sells products in the health-food industry. mcnamee sold johnny mac merchandise for 5000 on account.

Diane uses the lower of cost or market rule for its : diane company a retailer and wholesaler of national brand-name household lighting and fixtures purchases its

Sininsky mining inc has just discovered two new mining : sininsky mining inc. has just discovered two new mining sites for iron ore. geologists and engineers have come up with

Historically shifts towards a more expansionary monetary : historically shifts towards a more expansionary monetary policy have often been associated with increases in real

On point inc is interested in producing and selling a : on point inc. is interested in producing and selling a deluxe electric pencil sharpener. market research indicates that

Do the general management philosophy and accounting : the top management of general electronics inc. is well known for managing by the numbers. with an eye on the companys

Determine the overhead allocation for the batch of 200 : of purchase orders 400000 overhead cost of shipments 100000 of setups 300000direct labor hrs125000 of inspections

From a sack of fruit containing 3 oranges 2 apples and 3 : from a sack of fruit containing 3 oranges 2 apples and 3 bananas a random sample of 4 pieces of fruit is selected. if x

Scenario a - jesse aaron began his management consulting : scenario a - jesse aaron began his management consulting business on january 1 2010. he organized the business as a c

User Account

All Pages