Question
Using the pertinent information listed below, determine the various per unit non-manufacturing costs which are used to determine the target manufacturing cost per unit for
Using the pertinent information listed below, determine the various per unit non-manufacturing costs which are used to determine the target manufacturing cost per unit for the GPx.Marketing research based on the prototype indicates outdoor enthusiasts would be willing to pay $75.00 for this type of multi-functional waterproof and GPS enabled flashlight.First year demand is expected to be 140,000 flashlights.Spotlight wants to sell the GPx online to avoid retailer mark ups. Online sites will charge $1.00 per unit sold, plus a periodic fee of $70,000 for every 35,000 units sold.(These online site fees are typically recorded as operating expenses below gross margin).Spotlight requires a new product to earn 16% profit on the full retail price for it to be put into volume production.Shipping to online site warehouses will be done in pallets of 2.000 flashlights, at a cost of $4.500 per pallet.Full development costs for the initial GPx are estimated at $490,000. A redesign of the GPx (to incorporate a solar cell and wireless charging) is expected in the 2nd year.A marketing and advertising campaign is planned for the first year. The base cost of traditional marketing is estimated to cost $210,000. The marketing campaign will also include a social media push at a cost of $0.04 per click. 5,250,000 clicks are expected during the first year.Spotlight will charge the GPx product $448,000 of corporate costs which include: Legal fees of for patent filings, health insurance, and restricted stock options for new GPx employees.Enter your answer to each non-manufacturing cost as a number (no $ necessary) with a maximum of two decimal points, i.e. 2.90 or 14.65.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started