User Account

All Pages

Problem - Cost-Plus Pricing

Assignment Help Accounting Basics
Reference no: EM132474013

Problem - Cost-Plus Pricing

World View is considering production of a lighted world globe that the company would price at a markup of 25 percent above full cost. Management estimates that the variable cost of the globe will be $80 per unit and fixed costs per year will be $240,000.

Required -

a. Assuming sales of 1,200 units, what is the full cost of a globe, and what is the price with a 25 percent markup?

b. Assume that the quantity demanded at the price calculated in part a is only 600 units. What is the full cost of the globe, and what is the price with a 25 percent markup?

c. Is the company likely to sell 600 units at the price calculated in part b?

Reference no: EM132474013

Questions Cloud

Target Costing Question - What is the target cost per clock : Target Costing Question - The company requires a profit of 30 percent of selling price. What is the target cost per clock
What is the initial monthly payment on mortgage : (a) What is the initial monthly payment on this mortgage? (b) How much will the borrower owe at the end of the 3rd year?
What are the impacts of sarbanes-oxley on a company : What are the impacts of sarbanes-oxley on a company's internal controls. Be sure to define internal controls and discuss the basic principles for assessing
What is the total monthly payment : What is the total monthly payment that will be due on this mortgage in the first month? How much of this payment is attributable to principal? How much to inter
Problem - Cost-Plus Pricing : Problem - Cost-Plus Pricing. Assuming sales of 1,200 units, what is the full cost of a globe, and what is the price with a 25 percent markup
Determine what happens to overhead rates where direct labor : When automated equipment replaces direct labor, Determine what happens to overhead rates where direct labor is the allocation base?
What will be the effect on profit of accepting the order : At the start of the current year, the company received an order for 3,000 drives from computer company. What will be the effect on profit of accepting the order
What is the companys plantwide predetermined rate : What is the companys plantwide predetermined rate. Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories.
What are the portfolio weights : A risk-free asset currently earns 5.1 percent. If a portfolio of the two assets has a beta of 1.06, what are the portfolio weights?

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