Solution-What price would be offered to long-term customers

What price would be offered to long-term customers

Assignment Help Managerial Accounting

Reference no: EM132744568

Question - PRICING DECISIONS AND CUSTOMER PROFITABILITY

THEORETICAL QUESTIONS TO CONSIDER:

Market-based approach vs cost-based approach

Influence of time horizon on price-setting

Customer profitability analysis

Question - Sunrise Ltd is approached by an agent for an overseas customer seeking to source a large one-time-only special order for a product similar to one offered to regular customers. Sunrise Ltd has excess capacity.

The following per unit data applies for sales to regular customers:

Direct materials $45.60

Direct manufacturing labour $25.90

Variable manufacturing overhead $50.00

Fixed manufacturing overhead $100.00

Required -

(a) What is the minimum acceptable price of this one-time-only special order?

(b) What price would be offered to long-term customers?

Reference no: EM132744568

Questions Cloud

International project management : Explain the challenges and opportunities in developing a project statement of work with a diverse team;

Determine the contribution margin per direct labor hour : Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. Determine the contribution margin per direct labor hour

Analyse the brexit impact on uk economy : The advocates of ''Resource Dependence'' approach believe that they want to create their monopoly and there is no need to rely on others rather others

Case-starbucks-the leadership of howard schultz : Starbucks was started in 1971 by three academicians in Seattle. Ten years later, Howard Schultz joined the company. During his trip to Italy he realized

What price would be offered to long-term customers : The following per unit data applies for sales to regular customers: Direct materials $45.60. What price would be offered to long-term customers

Cost of goods sold and gross profit mean : What does the cost of goods sold and gross profit mean? Why show both gross profit and net income?

Discuss the characteristics of a highly effective team : The size, quality, and strength of a team depends on the individual contributions of each team member. Teamwork is developed, nurtured, and encouraged

Chester income statement : Chester has negotiated a new labor contract for the next round that will affect the cost for their product Camp. Labor costs will go from $7.86 to $8.36

Describe the exact nature of the project : Describe the exact nature of the project you propose to do and why you want to do this particular project

User Account

All Pages

What price would be offered to long-term customers

Reference no: EM132744568

Reference no: EM132744568

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT