Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cougar Fabricators still has the same costs outlined in 1- Life Cycle Pricing but now wants to the determine the selling price using Target pricing.

Cougar Fabricators still has the same costs outlined in "1- Life Cycle Pricing" but now wants to the determine the selling price using Target pricing. They have set the price at $75,000 per unit and require a minimum 30% return. 1a. Will the product meet their expectations for a 30% return? 1b. what is the exact return at a selling price of $75,000 per unit? 2. Cougar Fabricators wants to plan to give their employees a big bonus at the end of the 2 year cycle but need to hit a 50% return in order to accomplish that goal; (2a) will the $75K target price allow them to hit this goal? Why/Why Not? (2b) what would be the target price with exactly a 50% return? Show your work and calculate everything within excel to see the formulas you use to come up with your answers Note that Return refers to the percentage a company wants left over from the selling price after the company has factored in what it costs to make it. in other words Return % = (Selling price - Cost)/Cost

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

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

7th Edition

007331465X, 978-0073314655

More Books

Students also viewed these Finance questions

Question

explain the term related party

Answered: 1 week ago

Question

What are the APPROACHES TO HRM?

Answered: 1 week ago

Question

What do you mean by dual mode operation?

Answered: 1 week ago

Question

Explain the difference between `==` and `===` in JavaScript.

Answered: 1 week ago