1/attempt.phpattempt=3989078 cmid=511563&page-10 FNU | Moodle FNU Website FNU Library Student Web * Lecturers * Moodle Mobile Question 11 Not yet My Limited has decided to adopt the target-costing approach for all new answered products. The following data for a new product has been made available by the company's design department: Marked out of 5,00 . Forecast annual sales volume (in units) 10 Flag question 100 000 . Target selling price per unit Finis $300.00 Time . Desired profit margin per unit as a percentage of selling price 20% . Expected standard cost per unit prior to value engineering initiatives $260.00 For My Limited to achieve the desired profit margin per unit, what reduction in per unit cost will the design department need to achieve through the value engineering process? a. $60 b. $40 EMy online assessmen X C elearn. fu.ac.fj/mod/quiz/attempt.php?attempt=3989078cmid=511563&page=10 FNU FNU | Moodle FNU Website FNU Library Student Web . Lecturers * Moodle Mobile Urpan Marked out of 5,00 . Forecast annual sales volume (in units) 10 11 12 Flag question 100 000 . Target selling price per unit Finish attempt. $300.00 Time left 0:41:29 . Desired profit margin per unit as a percentage of selling price 20% . Expected standard cost per unit prior to value engineering initiatives $260.00 For My Limited to achieve the desired profit margin per unit, what reduction in per unit cost will the design department need to achieve through the value engineering process? O a. $60 O b. $40 O c. $54 O d. $20 DELLLecturers Moodle Mobile Question 12 Xian Zhou Transformers makes transformers to sell to the residential housing Not yet market. It has made a new product, the X2018. The Managing Director, Peter answered Zhou, is in the process of evaluating the new product using the following Marked out of information: 5,00 PFlag question A new transformer has two production runs a year, each with $ 10 000 in set-up costs. The new transformer incurred $30 000 in development costs and is expected to be produced over the next three years. . Direct costs of producing the transformers are $40 000 per run of 5000 transformers. . Indirect manufacturing costs charged to each run are $45 000. . Destination charges for each transformer average $ 1. . Customer service expenses average $0.20 per transformer. . The transformers are selling for $25 the first year, which will increase by $3 each year thereafter. . Sales units equal production units each year. Er DELLLecturers -Moodle Mobile Direct costs of producing the transformers are $40 000 per run of 5000 transformers. Indirect manufacturing costs charged to each run are $45 000. . Destination charges for each transformer average $1. . Customer service expenses average $0.20 per transformer. . The transformers are selling for $25 the first year, which will increase by $3 each year thereafter. . Sales units equal production units each year. What are the estimated life-cycle revenues? O a, $310 000 O b. $280 000 O c. $840 000 O d. $250 000 DELL