Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1) Hennig Plastics Equipment Corporation has developed a new injection moldimodel XPBOithat has been designed to outperform a competitor's bestselling injection mold. Model XP30 has

1)

image text in transcribedimage text in transcribed
Hennig Plastics Equipment Corporation has developed a new injection moldimodel XPBOithat has been designed to outperform a competitor's bestselling injection mold. Model XP30 has a useful life of 70,000 hours of service and its operating cost is $0.80 per hour. In contrast, the competitor's product has a useful life of 35,000 hours of service and has operating costs that average $1.10 per hour. The competitor's injection mold sells for $151,000. Hennig has not yet established a selling price for model X930. From a valuebased pricing standpoint what is XP30's economic value to the customer over its 70,000 hour useful life? Multiple Choice $172,000 $323,000 $189,500 3000 $200,000 The management of Giammarino Corporation is considering introducing a new product--a compact barbecue. At a selling price of $67 per unit, management projects sales of 10,000 units. Launching the barbecue as a new product would require an investment of $50,000. The desired return on investment is 14%. The target cost per barbecue is closest to: Multiple Choice O $75.58 O $66.30 O $76.38 O $67.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions

Question

What does this look like?

Answered: 1 week ago