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The company produces an item with the following costs: DM $6, DL $8. VMOH $3, VSG&A $6. Fixed manufacturing overhead is $150,000. Fixed operating costs

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The company produces an item with the following costs: DM $6, DL $8. VMOH $3, VSG&A $6. Fixed manufacturing overhead is $150,000. Fixed operating costs are $50,000. Use a 60% markup on total cost per unit. Assume 10,000 units. Compute the target selling price per unit. A company is considering a new item. Market research indicates that 200,000 units can be sold if the price is no more than $20. To produce the item, the company will need to invest $1,000,000 in new production equipment. The company requires a minimum rate of return of 25% on all investments. What is the target cost for this item? A fair price for this company's briefcase is $60. From this price the company wants a margin of 30%. The product costs the company $42.50 in addition to $250 shipping charge for each lot of 100 units shipped. By how much should the cost be reduced [find the difference between the current cost and the target cost]? This lamp costs the company $25 to produce and it can be sold for $28 a unit for an annual production of 2000 units. The company has an investment of $40,000 and requires a return of 20% on investment. The target profit per unit amounts to The target cost per unit amounts to XY7. charges $45 per hour of labor. It has a material loading percentage of 40%. On a recent job, a worker worked 10.5 hours and used parts with a cost of $700. Calculate the total bill. Data for a repair shop follows: Technician wages $ 130,000 Fringe benefits 30,000 Overhead 20.000 $180,000 The desired profit margin per labor hour is $10. The material loading charge is 40% of invoice cost. Harmon estimates that 8.000 labor hours will be worked next year. If the company repairs an item that takes four hours and uses parts that cost $50. compute the bill for this job

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