Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were

image text in transcribed
Quality Industries manufactures large workbenches for industrial use. Yewell Hartnet, the Vice President for marketing at Quality Industries, concluded from market analysis that sales were dwinding for Quality's workbenches due to aggressive pricing by competitors. Ouality's workbenches for $1,500 whereas the competition's comparable workbench sells for $1420. Yewell determined that a price drop to $1420 would be necessary to protect its market share and maintain an annual sales level of 13.900 workbenches Cost data based on sales of 13,900 workbenches: Budgeted Actual Quantity Quantity Actual cost Direct materials (pounds) 179,500 172,500 $3,454,500 Direct labor (hours) 74,600 73,750 327,250 Machine setups (no. of setups) 1,350 1,060 254,500 Mechanical assembly (nachine hours) 30, 450 263,500 3,759,000 the profit per unit is maintained the target cost per unit is rounded to the nearest whole dollar 5427 $32

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

Audit Society Rituals Of Verification

Authors: Michael POWER

1st Edition

0198296037, 978-0198296034

More Books

Students also viewed these Accounting questions