What is the target manufacturing cost for shoes

Assignment Help Financial Accounting
Reference no: EM131175641

Target Costing; International
Harpers, Ltd., is a U.K. manufacturer of casual shoes for men and women. It has sustained strong growth in the U.K. market in recent years due to its close attention to fashion trends. Harper's shoes also have a good reputation for quality and comfort.
To expand the business, Harpers is considering introducing its shoes to the U.S. market, where comparable shoes sell for an average of $90 wholesale', more than $16 above what Harpers charges in the United Kingdom (average price, £45). Management has engaged a marketing consultant to obtain information about what features U.S. consumers seek in shoes if they desire different features. Harper also has obtained information on the approximate cost of adding these features:

892_1.jpg

The current average manufacturing cost of Harpers's shoes is £34 (approximately $56 U.S.), which provides an average profit of £ 11 ($18 U.S.) per pair sold. Harpers would like to maintain this profit margin; however, the firm recognizes that the U.S. market requires different features and that shipping and advertising costs would increase approximately $10 U.S. per pair of shoes.

Required

1. What is the target manufacturing cost for shoes to be sold in the United States?

2. Which features, if any, should Harpers add for shoes to be sold in the United States?

3. Strategically evaluate Harpers's decision to begin selling shoes in the United States.

Reference no: EM131175641

Questions Cloud

Find the ridership when the price is two dollars : One of the most commonly used mathematical models for a demand function in micro-economics is x = Mp-k where p is the price of a commodity and x is the quantity of the commodity that can be sold. Suppose that M = 4, k = ½ p is the price per ride on..
Calculate the value of a bond that matures : Calculate the value of a bond that matures in 12 years and has $1,000 par value. The annual coupon interest rate is 9 percent and the market's required yield to maturity on a comparable-risk bond is 12 percent. Round to the nearest cent
Which organizational structure will the task force utilize : Which organizational structure will the task force utilize? What personnel and skills will the task force need to investigate the top three cyber threats?
Requirements of stark law and federal anti-kickback statute : Assess the main possible Health Insurance Portability and Accountability Act (HIPAA) violations that your facility risks by having a third party monitor the integrated database, and recommend at least one (1) method of preventing or addressing eac..
What is the target manufacturing cost for shoes : What is the target manufacturing cost for shoes to be sold in the United States? - Which features, if any, should Harpers add for shoes to be sold in the United States?
Discuss the impact that at least two of the factors : Draft the design of a new model program, not currently existent within your community. Provide a two- to- three paragraph statement that introduces your proposed community program. This section is tentative and might change as you conduct more res..
Describe the chinese culture as depicted in three tombs : Describe the chinese culture as depicted in three tombs at Mawangdui, Pay specific attention to Lady Dai. Write in MLA, Chcago, APA, any of your choice but observe all the rules for the chosen style, 10-15 pages.
What role management should play in workplace psychology : Explain how Ayame's cultural background might affect the way she receives feedback. Describe motivation techniques that could be implemented by management to increase Ayame's motivation.
Explain what is meant by the term synoptic gospels : Explain what is meant by the term "synoptic gospels", and discuss why this term is important for Christians when reading the Bible.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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