Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

whats 4to 7 please Student Name 4) Blair Stationery Company is a pr nalysis of its pany is a price-taker and uses target pricing. The

whats 4to 7 please image text in transcribed
Student Name 4) Blair Stationery Company is a pr nalysis of its pany is a price-taker and uses target pricing. The company has done in es, costs, and desired profits and has calculated its target all product on A products produced are soldater to the following into m Target full product cont Actual fixed cost Actual variable cost Production volume $510,00 per year $250,00 per year per unit 151.00 units per year Actual costs are currently higher than tar full moodust cost. Assuming that fixed costs cannot be reduced, what are the target total variable costs? A) $260,000 B) 5453,000 C) $250,000 D) $510,000 5) Fantabulous Products sells 2,200 kayaks per year at a price of $460 per unit. Fantabulous sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets, and the shareholders wish to make a profit of 17% on assets. Assume all products produced are sold. What is the target full product cost? A) $17,000,000 B) $842,000 C) $1,184,040 D) $1,012,000 6) Peacock, Inc, sells 2,100 kayaks per year at a sales price of $500 per unit. It sells in a highly competitive market and uses target pricing. The company has calculated its target full product costat 5820,000 per year. Fixed costs are $340,000 per year and cannot be reduced. What is the target variable cost per unit assuming units sold are equal to units produced? A) $229 B) $390 C) $552 D) $162 7) Fox, Inc. manufactures and sells pens for $7 each. Walton Corp. has offered Fox, Inc. $3 per pen for a one-time order of 3,500 pers. The total manufacturing cost per pen, using absorption costing, is $1 per unit and consists of variable costs of $0.75 per pen and fixed overhead costs of $0.25 per pen. Assume that Fox, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order? A) increase of $14,000 B) decrease of $14,000 C) increase of $7,875 D) decrease of $7,875

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_2

Step: 3

blur-text-image_3

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

Financial Accounting For Management

Authors: N Ramachandran

3rd Edition

1259004694, 978-1259004698

More Books

Students also viewed these Accounting questions

Question

a. How do you think these stereotypes developed?

Answered: 1 week ago

Question

7. Describe phases of multicultural identity development.

Answered: 1 week ago