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problem1: Chuckle's Toy Manufacturing has recently performed an activity based price analysis of one of its best-selling toys, the Main Man Robot. The analysis shows the estimated monthly cost per 1,000 unit productions run:

Currently feasible costs per month

 

Expected monthly revenues

$300,000

Unit-level resources and activities

mce_markernbsp;  96,000

Batch-level resources and activities

    20,000

Product-level resources and activities

   40,000

Customer-level resources and activities

     24,000

Facility-level resources and activities

     70,000

Total feasible costs per month:

$250,000

Chuckle's management has targeted a required return of 20 percent of monthly revenues. To achieve its objective, Chuckle's monthly cost reduction target is: 

[A] $10,000

[B] $50,000

[C] $60,000

[D] $0 - the company has already achieved its required return of 20 percent

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920367

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