Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm interested in understanding what we should price Acre at if we want to have a 46.8% margin. Remember, we need to account for the

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed I'm interested in understanding what we should price Acre at if we want to have a 46.8% margin. Remember, we need to account for the unit cost, period expenses, and overhead. The production cost for Acre is found in your Simulation Report. You can ignore possible inventory carrying costs and please assume period expenses and overhead for Acre totals 50% of its production cost. Could you please estimate this price point for me? Thank you, Mickey Cho Michelle Cho Board Member, Strategy | Andrews Corporation $45.81 $73.82 $26.18 $39.27 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{17}{|c|}{ Plant Information } \\ \hline Name & \begin{tabular}{l} Primary \\ Segment \end{tabular} & \begin{tabular}{l} Units \\ Sold \end{tabular} & Inventory & \begin{tabular}{c} Revision \\ Date \end{tabular} & \begin{tabular}{c} Age \\ Dec.31 \end{tabular} & MTBF & \begin{tabular}{l} Pfmn \\ Coord \end{tabular} & Size & Price & \begin{tabular}{c} Material \\ Cost \end{tabular} & \begin{tabular}{c} Labor \\ Cost \end{tabular} & \begin{tabular}{c} Contribution \\ Margin \end{tabular} & \begin{tabular}{c} 2nd Shift \\ \& Over- \\ time \end{tabular} & \begin{tabular}{l} Auto. \\ Next \\ Round \end{tabular} & \begin{tabular}{c} Capacity \\ Next Round \end{tabular} & \begin{tabular}{c} Plant \\ Utilization \end{tabular} \\ \hline \end{tabular} \begin{tabular}{lllllllllllllllll} Acre High End 761 & 24 & 3 -Dec- & 2026 & 1.1 & 24,793 & 12.2 & 7.8 & $38.00 & $16.10 & $10.08 & 31.9% & 1.1% & 3 & 809 & 101% \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{17}{|c|}{ Plant Information } \\ \hline Name & \begin{tabular}{l} Primary \\ Segment \end{tabular} & \begin{tabular}{l} Units \\ Sold \end{tabular} & Inventory & \begin{tabular}{c} Revision \\ Date \end{tabular} & \begin{tabular}{c} Age \\ Dec.31 \end{tabular} & MTBF & \begin{tabular}{l} Pfmn \\ Coord \end{tabular} & Size & Price & \begin{tabular}{c} Material \\ Cost \end{tabular} & \begin{tabular}{c} Labor \\ Cost \end{tabular} & \begin{tabular}{c} Contribution \\ Margin \end{tabular} & \begin{tabular}{c} 2nd Shift \\ \& Over- \\ time \end{tabular} & \begin{tabular}{l} Auto. \\ Next \\ Round \end{tabular} & \begin{tabular}{c} Capacity \\ Next Round \end{tabular} & \begin{tabular}{c} Plant \\ Utilization \end{tabular} \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

10th edition

1260481956, 1260310175, 978-1260481952

Students also viewed these Accounting questions