price setters. 3. When using cost-plus pricing, which amount per unit does not c
ID: 2584170 • Letter: P
Question
price setters. 3. When using cost-plus pricing, which amount per unit does not change when the expected volume differs from the budgeted volume? a. Variable cost b. Fixed cost c. Desired ROI d. Target selling price 4·The calculation to determine target cost is: variable manufacturing costs + fixed manufacturing costs. sales price- (variable manufacturing costs+ fixed manufacturing costs). variable manufacturing costs + selling and administrative variable costs sales price-desired profit. a. b. 5. The budget method that maintains a constant twelve-month planning horizon by adding a new month on the end as the current month is completed is called: a. an operating budget. b. a capital budget. c a continuous budget d. a master budget. 6. Lake Michigan Boards wants to produce and sell a new lightweight long board. Desired annual return on investment (ROI) is 20% The company anticipates their investment to be sio 000,000 Marketing studies show the potential price that the company will be able to charge is $150. Lake Michigan Boards estimates sales of 50,000 units annually. What is the total target cost for the new long board? a. $110 b. $100 c. $40 d. $120Explanation / Answer
Answer to part 3
Variable cost per unit does not change in comparison to others cost when there is a change in expected and budgeted volume
Answer to part 4
Target Cost = Sales price- desired profit
Answer to part 5
continuous budget
Answer to part 6
Particulars Amount Total Sales (50000 X 150) 7500000 Less: Required Return (10000000 X 20%) 2000000 Total Target Cost 5500000 No of Units 50000 Per Unit Target Cost 110Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.