Business Studies
What is the price if a markup of 35% on total cost is used to determine the price?
Sosa Company has $39 per unit in variable costs and $1,900,000 per year in fixed costs. Demand is estimated to be 138,000 units annually. What is the price if a markup of 35% on total cost is used to determine the price?
What price should be charged in order to maximize profits?
Bob’s Company sells one product with a variable cost of $5 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand. If fixed costs are $100,000 and the following chart represents the demand at various prices, what price should be charged in […]
business and finance
Carlton Products Company has analyzed the indirect costs associated with servicing its various customers in order to assess customer profitability. Results appear below: Cost Pool Annual Cost Cost Driver Annual Driver Quantity Processing electronic orders $1,000,000 Number of orders 500,000 Processing non-electronic orders $2,000,000 Number of orders 400,000 Picking orders $3,000,000 Number of different products […]
What would be the impact on profits if Costa were to accept this special order?
Costa Company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. Barton Company has approached Costa about buying 2,000 units for only $300 each. The units would be packaged in bulk, saving Costa $20 per unit when compared to the normal packaging cost. Normally, Costa has a variable […]
What price should be charged if 64,000 units are expected to be sold?
A company has $6.60 per unit in variable costs and $3.00 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.59, what price should be charged if 64,000 units are expected to be sold?
I need help with a business and finance
2. assume you were a consultant to the CEO at apple. What advice would you give on how apple could capitalize on its creativity? How can apple make money based on its own inclination to pursue creativity in certain ways? 3. what are the major obstacles and conceptual blocks that face apple right now? what […]
What price should the company charge?
The Estrada Company uses cost-plus pricing with a 0.37 mark-up. The company is currently selling 100,000 units at $12 per unit. Each unit has a variable cost of $4.00. In addition, the company incurs $190,300in fixed costs annually. If demand falls to72,600 units and the company wants to continue to earn a 0.37 return, what […]
What will the customer be charged?
A company using activity based pricing marks up the direct cost of goods by 0.28 percent plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.40 per order placed; $2.90 per separate item ordered; $28.60 per return. A customer places 10 orders with a […]
What additional costs will be charged to this customer?
A law firm uses activity-based pricing. The companys activity pools are as follows: Cost Pool Annual Estimated Cost Cost Driver Annual Driver Quantity Consultation 200,000 Number of consultations 100 consultations Administrative Costs 141,000 Admin labor hours 9,600 labor hours Client Service 89,000 Number of clients 100 clients The firm had two consultations with this client […]
How much of the accounting department costs will be allocated to the production?
Sasha Company allocates the estimated $190,800 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees […]