Syllabu x C O | Not secure | eztomheducation com/hmtpx psPenn State WebMal Penn

Question

Syllabu x C O | Not secure | eztomheducation com/hmtpx psPenn State WebMal Penn State Canvas l eLionPATHLaunch Pa MS 6 Sign in l McGrawHi D weeworK:Combs. @ MyTuabl Pearson-Mywru onlHome Psu Box Rainbow Cruises operates a week-long cruise tour through the Hawaian Islands. Passengers beverages, and entertainment. The current cost to Rainbow per two-person cabin is $1,380 for the needed to operete the business. Rainbow competes with two other cruise lines and to date. $1600 has been the currently pay $1600 far a two-person cabin which is an ell-inclusive price thet includes week-iong cruise, and at this cost Rainbow is able to earn the minimum profis margin preveiling market price for the week-long cruises Each cruise line References Section Break Exercise 16-14 Target costing LO 2.3 Required information 5.00 points Exercise 16-14 Part a Required: a. At a new market price of $1,350 per two-person cabin, calculate the target cost that will allow Rainbow to earn the same profit margin percentage it currently earns. (Do not round intermediate calculations. Round your answer to 2 decimal places.) cost 940 PM O Type here to search

Explanation / Answer

Selling price 1600 Cost 1380 Profit margin 220 % margin =220/1600 13.75% Part a New Market Price 1350 Profit Margin 13.75% Profit Margin 185.625 Target Cost 1164.375 Part b Target Cost reduction =1380-1164.375 Target Cost reduction 215.625 Part c Cost reduction measures Identify non essential activities and eliminate Reduce the wastage of foods and beverages Review the operations for cost saving

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.