Recent Posts • Latest Topics • Unanswered Questions

Do-It Company manufactures sinker molds for fishing. A sinker mold has a price of $7.00, and costs ...

ashly138

wrote...

Go to Answer

Posts: 686

Rep:

6 years ago

Do-It Company manufactures sinker molds for fishing. A sinker mold has a price of $7.00, and costs ...

Do-It Company manufactures sinker molds for fishing. A sinker mold has a price of $7.00, and costs currently assigned to it of $5.44. A competitor is introducing a new sinker mold that will sell for $6.00. Management believes it must lower the price to $6.00 in order to compete in the highly cost-conscious sinker mold market. Marketing believes that the new price will maintain the current sales level. Do-It Company's sales are currently 200,000 molds per year.

Required:
a.   What is the target cost for the new price if target profit is 20 percent of sales?
b.   What is the target selling price if costs cannot be reduced and target profit is changed to 15 percent of sales?
c.   What is the change in operating income for the year if $6.00 is the new price and costs remain the same?
d.   What is the target cost per unit if the selling price is reduced to $6.00 and the company wants to maintain its same income level?

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

Read 64 times

1 Reply

Report

Love this site! Slight Smile

Replies

Answer verified by a subject expert

Allopa

wrote...

Related Topics

ashly138 Author

wrote...

6 years ago

Thanks

decibul

wrote...

Yesterday

Thanks

cartoon

wrote...

2 hours ago

Thanks for your help!!

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1052 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

307

4436

131

Your Opinion

Previous poll results: Which industry do you think artificial intelligence (AI) will impact the most?

The Toxic Skin and Fungi Defense

Courses by Biology Forums

It's sore throat season, why does my mucus have red spots?

Bonobos, Chimpanzees, and the 98% DNA Link

Strange Ingredients Lurking in Doritos Chips

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.