What is the minimum selling price management

Assignment Help Accounting Basics
Reference no: EM132591360

Question - A company makes one product, which has variable manufacturing costs of 3.25 per unit and variable selling and administrative costs of 1.17 per unit. Fixed manufacturing costs are 42,300 per month and fixed selling and administrative costs are 29,900 per month. The company wants to earn an average monthly profit of 15,000 and they expect to produce and sell an average of 40,000 units of the product per month. What is the minimum selling price management can be expected to set to meet their profitability goals?

Reference no: EM132591360

Questions Cloud

What is the net cash flow from investing activities : SEAT manufacturing company ltd reported a net income of Rs, 80,000/- What is the net cash flow from investing activities
Calculate the current ratio and profit margin : Calculate the current ratio, profit margin, and after tax ROE for the company you chose, and then explain whether these ratios are favorable or unfavorable.
What are some of the audit issues related to this activity : Vendor verification is of the key activities involved in managing a company's vendor information. What are some of the audit issues related to this activity
Find how company has done to the industry average : Determine and Compare how company has done to the industry averages. Do you notice any trends that are positive or negative? Does anything look good or bad
What is the minimum selling price management : A company makes one product, which has variable manufacturing costs of 3.25 per unit, What is the minimum selling price management
Recommend a change would make to the current pension : Recommend a change you would make to the current pension accounting to more accurately reflect the future obligations of a company.
Consequentialist and non-consequentialist theories : Compare between consequentialist and non-consequentialist theories outlining an advantage and disadvantage of each.
What happened if the object is at infinity : Based on the thin lens equation, what happened if the object is at infinity?
How management be able to use different debt investment : Describe how management might be able to use (manipulate) the different debt investment classifications to help improve their company's reported net income

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd