What is the target cost reduction

Assignment Help Accounting Basics

Reference no: EM13158246

KO Toys has recently performed an analysis on a new toy product that they are planning to develop and sell. Marketing has informed them that they will sell 100,000 units per year. The selling price per unit will be $50. They estimate the variable cost per unit to be $30, and total fixed costs to be $1,000,000. Their required return is 20% of the selling price. What is their target cost reduction?

A). $100,000

B). $200,000

C). $250,000

D). $0 - the company has already achieved its required return of 20%

Reference no: EM13158246

Questions Cloud

Analyzing pride and prejudice in historical context : Analyzing Pride and Prejudice in historical context. Chose marriage as the institution and happiness/ individuality as the issue to discuss. I am having the hardest time coming up with a working thesis. If you have any pointers, I would love them...s..

What is the molarity of acetic acid in this vinegar : suppose you titrate a 25 ml sample of vinegar with 17.62 ml of a standardized 0.1045 N solution of NaOH. what is the molarity of acetic acid in this vinegar?

Purpose of jargon-slang and colloquialisms : What is the purpose of jargon, slang, and colloquialisms? Provide an example of 5 words used at your current or past workplace or in your personal life where others may not know the meaning.

Compare and contrast their functions in males and females : FSH and LH get their names from events of the female reproductive cycle, but they also function in males. Compare and contrast their functions in males and females.

What is the target cost reduction : They estimate the variable cost per unit to be $30, and total fixed costs to be $1,000,000. Their required return is 20% of the selling price. What is their target cost reduction?

How the endocrine and nervous systems in vertebrates : How are the hypothalamus and anterior pituitary central to endocrine regulation?

Instructional model steps for teachers : Create a lesson plan using the instructional model steps for teachers based on Gagne's theory, including Bloom's taxonomy, instructional objectives, activities, and media for any content area you choose.

Production level of an activity : At a production level of 0, an activity has a cost of $1000. At a production level of 100 units, that same activity has a cost of $1100. This is an example of a:

Calculate kp for the reaction : When heated, ammonium carbonate decomposes as follows. NH4CO2NH2(s) ->2 NH3(g) + CO2(g) At a certain temperature the equilibrium pressure of the system is 0.318 atm. Calculate KP for the reaction.

User Account

All Pages