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i need these done perfectly. i have 9 hrs. need an A 1) Slovenia Corporation manufactures a product that is marketed in North America, Europe,
i need these done perfectly. i have 9 hrs. need an A
1) Slovenia Corporation manufactures a product that is marketed in North America, Europe, and Asia. Its total manufacturing cost to produce 100 units of product X is : 2,250, detailed as follows: Raw materials 500 Direct labor 1,000 Overhead Total : 750 total2,250 The company bases its selling price on a cost- plus formula. Required: a. What would be Slovenia Corporation's selling price per unit if it wants a gross profit of 10 percent above cost? b. Slovenia Corporation wants to be price com- petitive on an international basis. To accom- plish this it must be able to price its product no higher than $21.50. Using the target cost- ing methodology described in this chapter, what would be Slovenia Corporation's allowable costs? Assume that the company still wants a profit margin of 10 percent of its allowable costs. What does your calculation imply about its manufacturing costs? 8. To encourage its foreign managers to incorporate expected exchange rate changes into their operating decisions, Vancouver Enterprises requires that all foreign currency budgets be set in Canadian dollars using exchange rates projected for the end of the budget period. To further motivate its local managers to react to unexpected rate changes, operating results at period's end are translated to dollars at the actual spot rate prevailing at that time. Deviations between actual and budgeted exchange rates are discarded in judging the manager's performance. At the start of the 2010 fiscal year, budgeted results for a Mexican affiliate, the Cuernavaca Corporation, were as follows (amounts in ththousands): Sales MXP 8,000,000 Expenses 6,400,000 Income MXP 1,600,000 CAD 2,560 2,048 CAD 512 Actual results for the year in dollars were: sales, CAD2,160,000; expenses, CAD1,680,000; and net income, CAD480,000. Relevant exchange rates for the peso during the year were as follows: Jan. 1, 2010 spot rate: CAD .00040 Global Enterprise's one-year forecast CAD .00032 Dec. 31, 2010 spot rate CAD.00024 Required: Based on the foregoing information, did the Mexican manager perform well? Support your answer using the variance analysis suggested in the chapter. (Refer to Exhibit 10-6.) 10. Parent Company establishes three wholly owned affiliates in countries X, Y, and Z. Its total investment in each of the respective affil- iates at the beginning of the year, together with year-end returns in parent currency (PC), appear here: Parent Company requires a return on its domestic investments of 10 percent and is evaluating the annual performance of its three foreign affiliates. To establish an appro- priate performance benchmark, Parent Company subscribes to a country risk evalu- ation service that compiles an unweighted risk index for various countries around the world. The risk scores for each of the n countries are: Country Risk Score (out of 60) X 30 Y 21 Z 15 Other things being equal, the higher the score, the lower the country's risk. Required: Prepare an analysis for Parent Company's management indicating which affiliate performed best. Subsidiary X Y Z Total Assets PC 1,000,000 PC 3,000,000 PC 1,500,000 Returns PC 250,000 PC 900,000 PC 600,000Step by Step Solution
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