Target costing basic motor corporation uses target costing

Assignment Help Accounting Basics

Reference no: EM13574304

Target Costing Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive selling price for the QuikCar in the upcoming model year will need to be $23,700. Assume further that the QuikCar's total unit cost for the upcoming model year is estimated to be $19,200 and that Basic requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost). a. What price will Basic establish for the QuikCar for the upcoming model year? $ b. What impact will target costing have on Basic, given the assumed information? The input in the box below will not be graded, but may be reviewed and considered by your instructor. Hide Feedback Partially Correct Check My Work Feedback

a. What dictates the price?

b. Subtract the 20% desired profit from the estimated price of $24,000.

Reference no: EM13574304

Questions Cloud

Peluso company a manufacturer of snowmobiles is operating : peluso company a manufacturer of snowmobiles is operating at 70 of plant capacity. pelusos plant manager is considering

Joker stock has a sustainable growth rate of 8 percent roe : joker stock has a sustainable growth rate of 8 percent roe of 18 percent and dividends per share of 3.35. if the pe

Able baker and charlie are the only three stocks in an : able baker and charlie are the only three stocks in an index. the stocks sell for 94 312 and 90 respectively. if baker

Shown below are selected data from the balance sheet of : shown below are selected data from the balance sheet of compros a small electronics store cash 75 accounts receivable

Target costing basic motor corporation uses target costing : target costing basic motor corporation uses target costing. assume that basic marketing personnel estimate that the

If you buy the note you will receive 10 annual payments of : yield of a note. you can buy a note at a price of 13500. if you buy the note you will receive 10 annual payments of

Explain the process of cross-hedging what are indicators of : explain the process of cross-hedging. what are indicators of effective cross

A corporation was formed on january 1 the corporation : a corporation was formed on january 1. the corporation charter authorized 100000 shares of 10 par value common stock.

Dt co produces picture frames it takes 3 hours of direct : dt co. produces picture frames. it takes 3 hours of direct labor to produce a frame. dts standard labor cost is 11.00

User Account

All Pages