Solution-What is the lowest price per unit

What is the lowest price per unit

Reference no: EM132778919

Questions -

Q1. Backwoods Incorporated manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $400 per table, consisting of 70% variable costs and 30% fixed costs. The company has surplus capacity available. It is Backwoods' policy to add a 50% markup to full costs.

What is the lowest price per unit Backwoods should bid on this long-term order, if company follows cost plus pricing (i.e. full cost + mark-up)?

Q2. Lata Chemicals Company wants to launch a new product (L2) in the market. The product is still in final stages of design. The company expects 25% margin on selling price. The current market price of the similar product is $ 3600. The production cost of this product (L2) currently comes around $ 300 per unit.

Calculate the reduction required in cost to meet the target cost per unit.

Reference no: EM132778919

Questions Cloud

Record the entry to close the income statement accounts : Record the entry to close the income statement accounts with credit balances. A physical account of its July 31 year-end inventory discloses that the cost

How much is the impairment loss : On December 20x4, the land was appraised at 28,000,000. How much is the impairment loss in 20x4

Do adjusting journal entries as building depreciation : Do adjusting journal entries as Building depreciation is $3,300. Sell some merchandise for $17,000 on account (Cost = 2,800). Draw $3,200 cash

Defining the Project Scope : Determine the scope of the District 4 Production Warehouse Move project from the information provided in the case.

What is the lowest price per unit : What is the lowest price per unit Backwoods should bid on this long-term order, if company follows cost plus pricing (i.e. full cost + mark-up)

What are the unique aspects of the external environment : What are the unique aspects of the external environment for this organization? Identify a strategic group the organization may belong to.

Discuss common risk factors for polypharmacy : Polypharmacy is defined as being on 5 or more medicines, and is a major concern for providers as the use of multiple medicines is common in the older population

Calculate the average daily number of vehicles : Calculate the average daily number of vehicles that should use the highway to justify widening on the basis of the following estimates

Find what is the approximate internal rate of return : What is the approximate internal rate of return for this investment? Sheridan, Inc. is considering purchasing equipment costing $40000 with a 6-year useful life

User Account

All Pages

What is the lowest price per unit

Reference no: EM132778919

Reference no: EM132778919

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT