Target Costing Portland Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 6,000 log-splitting machines per year at a retail price of $850 each. An independent catalog company would handle sales for an annual fee of $6,000 plus $59 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $95 per unit. If company management desires a return equal to 10 percent of the final selling price, what is the target conversion and administrative cost per unit? Round answer to the nearest cent.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Target Costing Portland Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The balance sheet of the Algonquin Company reported assets of $50,000, liabilities of $22,000 and common stock of $15,000. Based on this information only, the amount or balance for retained earnings must be: a) $7,000. b) $87,000. c) $13,000.
Answers (1)
Which of the following is a public good? A. Big-screen television B. Guitar C. Free, uncongested road D. MP3 Player
Answers (1)
Suppose the reserve ratio is 25 and banks do not hold excess reserves. When the Fed sells 40 million of bonds to the public who then deposits the proceed into the banking system.
Answers (1)
Unaware that 35% of the 10,000 voters in his constituency support him, a politician decides to estimate his political strength. A sample of 200 voters shows that 40% support him. What is the population
Answers (1)
Pronghorn Corporation had net sales of $2,417,100 and interest revenue of $37,500 during 2017. Expenses for 2017 were cost of goods sold $1,452,900, administrative expenses $221,200, selling expenses $282,700, and interest expense $45,100.
Answers (1)
New Questions in Business
Which financial statement shows a company's profits or losses over a period of time?
Answers (1)
Why do companies using a horizontal structure have cultures that emphasize openness, employee empowerment, and responsibility? What do you think a manager's job would be like in a horizontally organized company?
Answers (1)
One year a country has positive net exports. the next year it still has positive but larger net exports a. its trade surplus fell. b. its trade surplus rose. c. its trade deficit fell. d. its trade deficit rose.
Answers (1)
You are the production manager for the toy manufacturing process at the abc company. lumber company right arrow→ abc toy manufacturing company right arrow→ toy store at the mall an example of an internal supplier is a. the toy store at the mall. b.
Answers (1)
g Suppose you have a possible investment that costs $100 today but, starting one year from now, pays $5 in some years with probability 1/3, and in other years pays $10 with probability 1/3, and in other years pays 8$ with probability 1/3.
Answers (1)