Total cost is used to determine the price

Assignment Help Business Management
Reference no: EM131737241

1.A company has $50 per unit in variable costs and $1,200,000 per year in fixed costs. Demand is estimated to be 110,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

2. Power Drive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was:

Direct material $625,000

Direct labor 375,000

Variable overhead 125,000

Fixed overhead 1,500,000

Total cost $2,625,000

At the start of the current year, the company received an order for 3,200 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $125 per unit.

What will be the effect on profit of accepting the order?

Reference no: EM131737241

Questions Cloud

Company first international order : Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $125 per unit.
Discuss selected tv episode included aggression or violence : Discuss at least two (2) possible reasons why the selected TV episode included aggression or violence
Design for a money transfer protocol : INCS-741 Cryptography - Calculate the messages sent in steps 1 to 4 if A is sending $ amount equals to your NYIT ID to C - Explain two different vulnerabilities
Identify sources of long-term financing for genesis energy : Identify the sources of long-term financing for Genesis Energy. What is the required return for Genesis Energy shareholders?
Total cost is used to determine the price : Demand is estimated to be 110,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?
Describe the measure of actual unemployment : How is full employment defined, and why does the full-employment rate of unemployment keep changing?
What is the approximate market value of the bond : A 5-year zero-coupon bond was issued with a $1,000 par value to yield 8%. What is the approximate market value of the bond?
What is the proper treatment to correct the error : The error was not discovered until late in 2016 while reconciling year-end expenses for 2016. What is the proper treatment to correct the error
Discuss a memory training program for elderly people : a memory training program for elderly people that would include age, gender, education level, socioeconomic status, what memory loss would be targeted

Reviews

Write a Review

Business Management Questions & Answers

  Project scope management so challenging in it projects

Why do you think project scope management so challenging in IT projects? What suggestions do you have for preventing scope creep in projects?

  How do agile project management approaches

1) How do Agile project management approaches relate to traditional (PMI PMBOK) approaches? 2) What is Scrum and how does it relate to Agile methodologies?

  What was the current account balance

Assume there are only 3 countries in the world: X, Y, and Z. In 2010, X ran a Current Account deficit of $10 billion while X ran a Current Account surplus of $3.5 billion. What was the Current Account balance for Z? Was it a surplus or a deficit?

  Support the purpose of fire inspections

Diamantes describes seven key components that support the purpose of fire inspections. Select one of the seven, and provide a real-world example that explains why the component you selected is vital to fire safety.

  Is conflict a natural phenomenon

Q1. Is conflict a natural phenomenon? Should it ever be stimulated, or should we attempt to resolve it at all times? In your discussion provide example(s).

  Find the web site for roi institute

Use a search engine of your choice and find the web site for ROI Institute, Inc. Once you have found the website, click on "Tool," and review the "Nations Hotels-Measuring the ROI in Business Coaching."

  How could project cost influence an organizational structure

How could Project cost influence your choice for an organizational structure? Explain your answers in as much depth as possible.

  Discussion-competitiveness and inventory management

To be competitive, many fast-food chains expanded their menus to include a wider range of foods. Although contributing to competitiveness, this has added to the complexity of operations, including inventory management.

  Summarize the given ppt and analysis with own thoughts

Summarize the atteched PPT and analysis with own thoughts- Rob Elliott, vice president of government affairs for MGM Mirage

  What issues does ebays top management need to address

Based on your analysis of the industry and eBay's situation, what problems and issues does eBay's top management need to address?

  Financial aspects of the sports industry

After reading the resource articles that discuss the various financial aspects of the sports industry, review a major sporting event.

  Develop an analysis of these three investments in excel

Develop an analysis of these three investments in Excel. Use expected value to determine which of the three alternatives you should choose.

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