Ch 13 Homework 1 Target Costing Excel 3 ClassCo is performing a target costing analysis of a hearing aid (ClassCo 2), which sells for $760 (Var cost $440, Op Inc $500K at base volume) and has 30 of the market However, a competitor has introduced a new model that incorporates a computer chip that improves quality Its price is $850 A consumer analysis indicates that cost conscious consumers will remain loyal to ClassCo as long as price does not exceed $600 Determine contribution amount for each of the 3 alternatives show calculations BASE Alternative A Try to Maintain current Op Inc Contrib Margin per unit reduce SP to $600, reduce R D, replace parts, and reduce inspection proceduresavings $300K of fixed $120 unit of variable , no capital expenditures Very small reduction in WC Sales 10,000 units SP Each $750 00 Alternative B Do A AND replace parts deducting $30 unit variable to A option and reduce inspection Mfg Fixed procedure savings $150K Period sales 7,500,000 Alternative C staring with BASE, R D Capital exp of $500k,5 yr life, 0 residual increase R D to develop a computer chip based hearing aid, replace parts, Mfg Fixed Exp ,change inspection procedure, renegotiate new supplier contractsavings $150K increase commissions by 5 per unit units increas 3 Var Unit Fixed Cost Manufacturing R D 375 00 1,450,000 SG A 60 00 1,000,000 8 commissions variable Totals 435 00 2,450,000 Contribution each 315 00 Contribution amount 3,150,000 Operating income 700,000 AutoSave ( orr Student Ch 13 constraint Exrel with HW xrrl Alfahrid,Salch Mohammed S Filr Home Insert Draw Pagr laynut Formulas Data Rrview Viw Tell me what you want to do Share A1 AB AC AE AF AI Target Costing Excel 3 1 Ch 13 Homework ClassCo is performing a target costing analysis of a hearing aid (ClassCo 2), which sells for $760 (Var, cost $440, Op Inc $500K volume) and has 30 of the market However, a competitor has introduced a new model that incorporates a computer chip that im quality Its price is $850 A consumer analysis indicates that cost conscious consumers will remain loyal to ClassCo as long as price Ch 13 HW exceed $600 Determine contribution amount for each of the 3 alternatives llshow calculations Alternative A Try to Maintain current Op lnc Contrib Margin per unit reduce SP to $600, reduce R D, replace parts, and reduce inspection procedure savings S300K of fixed S120 unit of variable , no capital expenditures Very small reduction in WC BASE Sales 10,000 units Alternative B Do A AND replace parts deducting $30 unit variable to A option and reduce inspection Mfg Fixed procedure savings $150K SP Each 750 00 Perlod sales 7,500,000 Alternative C staring with BASE, R D Capital exp of $500k,5 yr life, 0 residual increase R D to develop a computer chip based hearing aid, replace parts, Mfg Fixed Exp ,change inspection procedure, renegotiate new supplier contract savings $150K increase commissions by 5 per unit units increas 3 Var Unlt Fixed Cost 10 Manufacturing R D SG A Totals Contribution each 375 00 1,450,000 8 commiselona tvarl able 12 13 1 Contribution amount 3,150,000 60 001,000,000 435 00 2,450,000 315 00 Operating income 700,000 16 17 Ch 13 Constraints Excel Ch 13 HW Seled desination and uress ENIER ur thuese Paste 1 ENG 1144 PM US 11 6 2017 Type here to search AutoSave ( orr Student Ch 13 constraint Exrel with HW xrrl Alfahrid,Salch Mohammed S Filr Home Insert Draw Pagr laynut Formulas Data Rrview Viw Tell me what you want to do Share A1 AB AC AE AF AI Target Costing Excel 3 1 Ch 13 Homework ClassCo is performing a target costing analysis of a hearing aid (ClassCo 2), which sells for $760 (Var, cost $440, Op Inc $500K volume) and has 30 of the market However, a competitor has introduced a new model that incorporates a computer chip that im quality Its price is $850 A consumer analysis indicates that cost conscious consumers will remain loyal to ClassCo as long as price Ch 13 HW exceed $600 Determine contribution amount for each of the 3 alternatives llshow calculations Alternative A Try to Maintain current Op lnc Contrib Margin per unit reduce SP to $600, reduce R D, replace parts, and reduce inspection procedure savings S300K of fixed S120 unit of variable , no capital expenditures Very small reduction in WC BASE Sales 10,000 units Alternative B Do A AND replace parts deducting $30 unit variable to A option and reduce inspection Mfg Fixed procedure savings $150K SP Each 750 00 Perlod sales 7,500,000 Alternative C staring with BASE, R D Capital exp of $500k,5 yr life, 0 residual increase R D to develop a computer chip based hearing aid, replace parts, Mfg Fixed Exp ,change inspection procedure, renegotiate new supplier contract savings $150K increase commissions by 5 per unit units increas 3 Var Unlt Fixed Cost 10 Manufacturing R D SG A Totals Contribution each 375 00 1,450,000 8 commiselona tvarl able 12 13 1 Contribution amount 3,150,000 60 001,000,000 435 00 2,450,000 315 00 Operating income 700,000 16 17 Ch 13 Constraints Excel Ch 13 HW Seled desination and uress ENIER ur thuese Paste 1 ENG 1144 PM US 11 6 2017 Type here to search

Question

Ch 13 Homework  1 Target Costing Excel 3 ClassCo is performing a target costing analysis of a hearing aid (ClassCo 2), which sells for $760 (Var  cost   $440, Op Inc   $500K at base volume) and has 30  of the market  However, a competitor has introduced a new model that incorporates a computer chip that improves quality  Its price is $850  A consumer analysis indicates that cost conscious consumers will remain loyal to ClassCo as long as price does not exceed $600  Determine contribution amount for each of the 3 alternatives   show calculations BASE  Alternative A  Try to Maintain current Op Inc    Contrib  Margin per unit  reduce SP to $600, reduce R D, replace parts, and reduce inspection proceduresavings    $300K of fixed   $120 unit of variable  , no capital expenditures  Very small reduction in WC  Sales 10,000 units SP Each $750 00 Alternative B  Do A AND replace parts deducting $30 unit variable to  A  option and reduce inspection Mfg  Fixed procedure savings   $150K Period sales 7,500,000 Alternative C  staring with BASE, R D Capital exp  of $500k,5 yr  life,  0  residual  increase R D to develop a computer chip based hearing aid, replace parts, Mfg  Fixed Exp ,change inspection procedure, renegotiate new supplier contractsavings   $150K  increase commissions by 5  per unit  units increas 3  Var Unit Fixed Cost Manufacturing   R D 375 00 1,450,000 SG A 60 00 1,000,000 8  commissions  variable  Totals 435 00 2,450,000 Contribution each 315 00 Contribution amount 3,150,000 Operating income 700,000 AutoSave (  orr Student Ch 13 constraint Exrel with HW xrrl Alfahrid,Salch Mohammed S Filr Home Insert Draw Pagr laynut Formulas Data Rrview Viw Tell me what you want to do Share A1 AB AC AE AF AI Target Costing Excel 3  1 Ch 13 Homework ClassCo is performing a target costing analysis of a hearing aid (ClassCo 2), which sells for $760 (Var, cost $440, Op  Inc   $500K volume) and has 30  of the market  However, a competitor has introduced a new model that incorporates a computer chip that im quality  Its price is $850  A consumer analysis indicates that cost conscious consumers will remain loyal to ClassCo as long as price Ch  13 HW exceed $600 Determine contribution amount for each of the 3 alternatives llshow calculations Alternative A  Try to Maintain current Op lnc    Contrib  Margin per unit  reduce SP to $600, reduce R D, replace parts, and reduce inspection procedure savings    S300K of fixed   S120 unit of variable , no capital expenditures  Very small reduction in WC  BASE  Sales 10,000 units Alternative B  Do A AND replace parts deducting $30 unit variable to  A  option and reduce inspection Mfg  Fixed procedure savings $150K SP Each 750 00 Perlod sales 7,500,000 Alternative C  staring with BASE, R D Capital exp  of $500k,5 yr  life, 0 residual  increase R D to develop a computer chip based hearing aid, replace parts, Mfg  Fixed Exp ,change inspection procedure, renegotiate new supplier contract savings $150K  increase commissions by 5  per unit  units increas 3  Var Unlt Fixed Cost 10 Manufacturing R D SG A Totals Contribution each 375 00 1,450,000 8  commiselona tvarl able  12 13 1 Contribution amount 3,150,000 60 001,000,000 435 00 2,450,000 315 00 Operating income 700,000 16 17 Ch  13 Constraints Excel Ch  13 HW Seled desination and uress ENIER ur thuese Paste 1   ENG 1144 PM US 11 6 2017 Type here to search AutoSave (  orr Student Ch 13 constraint Exrel with HW xrrl Alfahrid,Salch Mohammed S Filr Home Insert Draw Pagr laynut Formulas Data Rrview Viw Tell me what you want to do Share A1 AB AC AE AF AI Target Costing Excel 3  1 Ch 13 Homework ClassCo is performing a target costing analysis of a hearing aid (ClassCo 2), which sells for $760 (Var, cost $440, Op  Inc   $500K volume) and has 30  of the market  However, a competitor has introduced a new model that incorporates a computer chip that im quality  Its price is $850  A consumer analysis indicates that cost conscious consumers will remain loyal to ClassCo as long as price Ch  13 HW exceed $600 Determine contribution amount for each of the 3 alternatives llshow calculations Alternative A  Try to Maintain current Op lnc    Contrib  Margin per unit  reduce SP to $600, reduce R D, replace parts, and reduce inspection procedure savings    S300K of fixed   S120 unit of variable , no capital expenditures  Very small reduction in WC  BASE  Sales 10,000 units Alternative B  Do A AND replace parts deducting $30 unit variable to  A  option and reduce inspection Mfg  Fixed procedure savings $150K SP Each 750 00 Perlod sales 7,500,000 Alternative C  staring with BASE, R D Capital exp  of $500k,5 yr  life, 0 residual  increase R D to develop a computer chip based hearing aid, replace parts, Mfg  Fixed Exp ,change inspection procedure, renegotiate new supplier contract savings $150K  increase commissions by 5  per unit  units increas 3  Var Unlt Fixed Cost 10 Manufacturing R D SG A Totals Contribution each 375 00 1,450,000 8  commiselona tvarl able  12 13 1 Contribution amount 3,150,000 60 001,000,000 435 00 2,450,000 315 00 Operating income 700,000 16 17 Ch  13 Constraints Excel Ch  13 HW Seled desination and uress ENIER ur thuese Paste 1   ENG 1144 PM US 11 6 2017 Type here to search

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Ch.13 Homework #1 Target Costing Excel 3 ClassCo is performing a target costing analysis of a hearing aid (ClassCo-2), which sells for $760 (Var. cost

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