Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quality Shoes Co. has gathered the following information concerning one model of shoe: Variable manufacturing costs $50,000 Variable selling and administrative costs $25,000 Fixed manufacturing

Quality Shoes Co. has gathered the following information concerning one model of shoe:

Variable manufacturing costs $50,000

Variable selling and administrative costs $25,000

Fixed manufacturing costs $200,000

Fixed selling and administrative costs $150,000

Investment $2,125,000

ROI 30%

Planned production and sales 5,000 pairs

2,A What is the total cost per pair of shoes?

a. $50

b. $85

c. $210

d. $120

2,B What is the desired ROI per pair of shoes?

a. $85.00

b. $210.00

c. $127.50

d. $212.50

2,C What is the target selling price per pair of shoes?

a. $177.50

b. $212.50

c. $142.50

d. $197.50

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

How To Audit Document Control System Based On ISO 9001 2015

Authors: Folarin Omojoye

1st Edition

B09892NF88, 979-8525615175

More Books

Students also viewed these Accounting questions

Question

Connect with your audience

Answered: 1 week ago