Can someone please provide an explanation as to how the following problems were solved. The correct answers are listed I just need a breakdown of how to solve them. Thanks. 47. Hughes currently sells a mixer for $850 that market leaders sell for $815. The current costs to manufacture and distribute the mixer total $530, and the company has a profit goal of 40% of sales. Hughes uses target costing in its efforts to be a leader in the marketplace. On the basis of this information, (1) what should Hughes consider to be the initial driver of the target-costing process and (2) what amount of cost reduction is needed for the company to achieve its goals? Initial Driver Cost Reduction A. Current price of $850 $20 B. Current price of $850 $41 C. Market leaders' price of $815 $20 D. Market leaders' price of $815 $41 E. Market leaders' price of $815 Some other amount Answer: D LO: 5 Type: RC, A 48. Quantum Enterprises currently sells a piece of luggage for $200. An aggressive competitor has announced plans for a similar product that will be sold for $170. Quantum's marketing department believes that if the price is dropped to meet competition, unit sales will increase by 10%. The current cost to manufacture and distribute the luggage is $130, and Quantum has a profit goal of 30% of sales. If Quantum meets competitive selling prices, what must happen to the company's manufacturing and distribution cost? A. Nothing, because the costs are within defined ranges and can actually increase by $10. B. Nothing, because the costs are within defined ranges and can actually increase by $23. C. Costs must decrease by $11. D. Costs must decrease by $39. E. None of the above. Answer: C LO: 5 Type: A 49. Montana produces bicycles in a highly competitive market. During the past year, the company has added a 30% markup on the $250 manufacturing cost for one of its most popular models. A new competitor manufactures a similar model, has established a $300 selling price, and is seriously eroding Montana's market share. Management now desires to use a target-costing approach to remain competitive and is willing to accept a 20% return on sales. If target costing is used, which of the following choices correctly denotes (1) the price that Montana will charge and (2) company's target cost? Selling Price Target Cost A. $300 $240 B. $300 $250 C. $325 $240 D. $325 $250 E. Some other combination of selling price and target cost. Dexter, Inc., which manufactures various lines of computer equipment, is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated production costs as follows: Variable costs: Manufacturing $450,000 Selling and administrative 100,000 Total variable costs $ 550,000 Fixed costs: Manufacturing $300,000 Selling and administrative 180,000 Total fixed costs 480,000 Total costs $1,030,000 The average amount of capital invested in the laptop product line is $900,000 and Dexter's target return on investment is 18%. 34. What price must Dexter charge if the company uses cost-plus pricing based on total cost? A. $868. B. $900. C. $1,000. D. $1,192. E. Some other amount. Answer: D LO: 3 Type: A 35. If Dexter uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be: A. 15.72%. B. 21.64%. C. 29.56%. D. 58.93%. E. some other amount. Answer: D LO: 3 Type: A 36. What price must Dexter charge if the company uses cost-plus pricing based on total variable cost? A. $712. B. $900. C. $1,030. D. $1,192. E. Some other amount