Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Baker Plumbing Fixtures is developing a preplumbed acrylic shower unit. The team developing the product includes representatives from marketing, engineering, and cost accounting. To date, the team has developed a set of features that it plans on incorporating in the unit, including as seat, two shower heads, four body sprays, and a steam unit. With this set of features, the team believes that a price of $5,000 will be attractive in the market place. Baker seeks to earn a per unit profit of 30% of selling price.

a. find out the target cost per unit

b. The team has estimated that the fixed production costs associated with the product will be $2,000,000 and the variable costs to produce and sell the item will be $2,500 per unit. In light of this, how many units must be produced and sold to meet the target cost per unit?

c. Suppose the company decides that only 1,400 units can be sold at a price of $ 5,000 and, therefore, the target cost cannot be reached. The company is considering dropping the steam feature, which adds $ 600 of variable cost per unit. With this feature dropped, the company believes it can sell 2,500 units at $ 4,000 per unit. Will Baker be able to produce the item at the new target cost or less?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926909

Have any Question? 


Related Questions in Basic Finance

Evaluate the expression uwxyz exactly as parenthesized ie

Evaluate the expression (u+)+(w+x)+(y+z) exactly as parenthesized (i.e., do not use the commutative or associative laws to reorder the additions). Give register-level machine code to provide the maximum possible parallel ...

Read one practical article of how psychology affects

Read one practical article of how psychology affects spending behavior. Easily retrieve possible articles by doing an online search using the terms "psychology" and "spending." Summarize the main points of the article.

1 how can restrictive covenants in bonds be both an agency

1. How can restrictive covenants in bonds be both an agency cost of debt and a way to prevent agency costs of debt? 2. What are the trade-offs in the agency cost/tax shield trade-off model? How is the firm's optimal capi ...

1 what are placebo effects and how can they be avoided2

1. What are placebo effects, and how can they be avoided? 2. What are demand characteristics, and how can they be avoided? 3. In what ways may experimenters unwittingly communicate their expectations to research particip ...

1 define willingness to pay and how it can be evaluated2

1. Define willingness to pay and how it can be evaluated. 2. What information is normally obtained from a credit report? 3. In analyzing corporate credit, what further investigation would an underwriter employ beyond a c ...

Get a copy of your communitys hazard mitigation plan from

Get a copy of your community's hazard mitigation plan from your local office of emergency management. Create a mitigation plan for yourself that addresses the hazards identified in the community plan as they affect you o ...

1 describe the major difference between within-subjects and

1. Describe the major difference between within-subjects and between-subjects designs. 2. Describe the advantages of the within-subjects design. 3. Describe the disadvantages of the within-subjects design. 4. Explain how ...

Atlantis reit expects an income of 800 per share this

Atlantis REIT expects an income of $8.00 per share. This includes a deduction of $2.00 per share for depreciation. Atlantis did not have any gains from the sale of real estate. Its properties are mainly apartments, and y ...

1 what do record date ex-dividend date and payment date

1. What do record date, ex-dividend date, and payment date mean, related to dividends? Why would you expect the price of a stock to drop by the amount of the dividend on the ex-dividend date? What rationale has been offe ...

1 in addition to the key words you should also be able to

1. In addition to the key words, you should also be able to define the following terms: third-variable problem directionality problem confounding variable random process placebo mundane realism experimental realism 2. De ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro