Managerial Acct Questions P5

54. Which of the following lists the steps in the target costing process in the proper order? A. Analyze customer needs and wants, determine the desired profit, find the target cost, and design the product Design the product, analyze customer needs and wants, determine the desired profit, and find the target cost Analyze customer needs and wants, find the target cost, design the product, and determine the desired profit Analyze customer needs and wants, determine the desired profit, design the product, and find the target cost 55. What is the basic premise of target costing? Products should be designed to meet customer needs at a price customers are willing to pay that allows the company to make a reasonable profit. Products should be designed at the least cost possible to enable the lowest price in the market. Products should be designed based on features that competitors' products include to enhance the company's ability to compete more effectively The price with the highest profit should always be selected. 56. Light Bright believes it can sell 40,000 of its newly developed laser lights at a price of$24.00 each. There will be $680,000 in fixed costs associated with the laser light. If the company desires to make a profit of $100,000 on the laser light, what is the target variable cost for each laser light? $4.50 $32.50 $28.33 $8.50 57. A company believes it can sell 8,000 units of its proposed new garage door opener at a price of $100 each. If the company desires to make a profit of 30% of selling price on the garage door opener, what is the target cost per opener? $130 $110 $70 $30 following is not assigned to individual customers when employing a customer 58. profitability analysis? Sales revenue Cost of goods sold Cost of filling the customer's orders Cost of designing a new product 59. Which one of the following might result from performing a customer profitability analysis? Dropping some customers that are unprofitable Increasing prices or offering incentives to profitable customers Eliminating products that cause customers to complain Offering customers that use more services than others a special customer service unit that provides more one-on-one time