Calculating a Target Cost Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don’t Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 A.M. The new phone model has a target price of $350. Management requires a 20 percent profit on new product revenues. Required: 1. Calculate the amount of desired profit. 2. Calculate the target cost.
Calculating a Target Cost Yuhu manufactures cell phones and is developing a new model with a feature (aptly named Don’t Drink and Dial) that prevents the phone from dialing an owner-defined list of phone numbers between the hours of midnight and 6:00 A.M. The new phone model has a target price of $350. Management requires a 20 percent profit on new product revenues.
Required:
1. Calculate the amount of desired profit.
2. Calculate the target cost.
Want to see the full answer?
Check out a sample Q&A here
Related Accounting Q&A
Find answers to questions asked by students like you.
Q: Total income subject to Philippine income tax assuming Jasmine is a resident citizen Jasmine has the...
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...
Q: John is filing taxes individually, his salary is $102,000, he also received $5,000 on interest from ...
A: Taxable income:-It is an income that is liable for tax payment as per the slab rate prescribed in in...
Q: Which business enterprises pay untaxed profits to owners/partners who then pay the taxes on their in...
A: Profits are referred to as the gains which a business earns when it sells the good or provides the s...
Q: Scenario: For the past several years, Angela Smith operated a part-time consulting business from h...
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...
Q: Can you please also complete the 28, 30, 30 and 31 transactions
A: Accounting equation helps management to analyze the balance of total assets to total liabilities &am...
Q: Given a $5,000 loan at 8% for 90 days, compare the interest accrued using the standard method (365 d...
A: calculate interest under standard method Interest = ($5,000 / 300) * 85 * 90 /365) Interest = $32.8...
Q: While completing your audit work for the 30 June 2019 audit of Greenfield Ltd, you become aware of t...
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...
Q: Why auditors gather evidences?
A: Auditing is basically an inspection or checking of books of accounts maintained by the business. Aud...
Q: Retained Earnings at the beginning and ending of the period were $950 and $2,000, respectively. If r...
A: Formula: Profit before appropriations = Revenues - expenses Deduction of expenses from revenues deri...
Q: Suppose that a surgical ward has gathered the following information for four nursing activities and ...
A: (A) (B) (A X B) (C) (A X C) Activity Rate Normal Nursing cost Intensive Nursing cost Treatin...
Q: performance of National Company. Comment on overall financial position and financial health of the b...
A: Ratio analysis is a very important technique of financial analysis by which financial position of th...
Q: Edwards Co. includes one coupon in each bag of dogfood it sells. In return for four coupons, custome...
A: Click to see the answer
Q: Fill out the missing boxes.
A: Ledgers: It is the main book or principal book of account. It is recording and totaling economic tra...
Q: On January 1, 2019, as a form of executive compensation, Wadlin Corporation grants share appreciatio...
A: SAR refers to Share Appreciation Rights. SAR is an added benefit given to employees to have right ov...
Q: Florida Corporation uses the weighted-average method in its process costing system. The Assembly Dep...
A: Equivalent units of production = No. of units transferred + (Ending work in process inventory x % of...
Q: What is the major difference between auditing services and assurance services?
A: Audit and assurance both are the process used to analyse and evaluate the financial records of the c...
Q: On January 1, 2021 CcC acquired all of the identifiable assets and assumed all liabilities of DDD by...
A: On 01.01.2021, CCC acquired net assets to DDD Purchase consideration = P4800000 Fair value of asset...
Q: How do you get the answer? Times-Roman Publishing Company reports the following amounts in its fir...
A: Amount of Deferred Subscription Revenue = Beginning balance + Subscription payments received - Subsc...
Q: Following the general format of a four-columin bank reconcilation with the various categories and pr...
A: Bank Reconciliation: It is a statement where the bank balance as per cash book matches with the bank...
Q: See Through Incorporated retails hand blown glass vases and uses a perpetual inventory system. A sta...
A: LIFO is an inventory computation method used by the corporation where the last purchased goods assum...
Q: Classique Designs sells a variety of merchandise, including school shoes for girls. the business be...
A: There are two type of way in which inventory is managed, periodic inventory system or prepectual inv...
Q: ABC incurred P200,000 on general administrative costs of maintaining an internal acquisition departm...
A: Goodwill: Goodwill defines an intangible asset of the company. It is the excess of purchase price pa...
Q: 1. The balance sheet as of December 31, 20x2 contained the following: Assets ...
A: "Since you have asked multiple questions, we will solve first question for you. If you want any spec...
Q: Problem 12 On January 1, 2020 Machu, Inc. acquired mining rights near Cordillera for P20,000,000 for...
A: On 01.01.2020, 1. Machu Inc. acquired mining rights = P20000000 for 10 years. No cash payment made b...
Q: PROBLEM Parranda Corporation paid cash of $18,000 on June 1, 2020 for one year's rent in advance and...
A: The amount of expenses paid in advance are recorded as prepaid expense. When the expenses get expire...
Q: A. Goodwill recorded at P1,324,200B. Retained Earnings increased by P704,400C. Current Assets increa...
A: The goodwill recorded by the acquiring company is determined by subtracting the fair value of net id...
Q: Accounting Question
A: Journalize financial transaction in debit and credit column is one of important and careful process ...
Q: Junkyard Arts, Inc., had earnings of $174,300 for the year. The company had 24,000 shares of common ...
A: Earnings per share refers to the amount earned by each stockholder. This can be identified by dividi...
Q: (REQUIRED] Compute diluted earnings per share for the fiscal year ended on 12/31/2020. Please round ...
A: Diluted EPS = (Net Income before preferred dividend + After tax cost of interest) /(Common shares ou...
Q: Marigold Corp. had the following information in its financial statements for the year ended 2020 and...
A: Book value per share = Common shareholder's equity / Outstanding shares
Q: What's the meaning of this quote “Entrepreneurship is the pursuit of opportunity without regard to r...
A: Entrepreneurship: Entrepreneurship refers to the process of arranging the required resources and sta...
Q: A company produces X, Y and Z from a raw material M. For every 100 tonnes of M put into production i...
A: Hey there since you have posted multiple questions, we can answer only first question for you, pleas...
Q: On January 1, 2021 CCC acquired all of the identifiable assets and assumed all liabilities of DDD by...
A: The net identifiable assets acquired on acquisition is recognized at their fair value and the value ...
Q: ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The p...
A: Share capital is the amount which is raised by issuing common or preferred stock. Every company has ...
Q: How can the qualitative faithful representation (reliability) characteristic be improved in high-qua...
A: Financial accounting:- Financial accounting is defined as the accounting, which includes recording, ...
Q: a. Depreciation on the company's wind turbine equipment for the year is $6,100. b. The Prepaid Insur...
A: Adjusting journal entry: At year end when company finalise its accounts then any unrecognized income...
Q: Accounting Question
A: Hi! Thank you for the question. As per the honor code, We are allowed to answer three sub-parts at a...
Q: Accounting Question
A: Journal entry is defined as the one which is used for recording the business transactions into the b...
Q: PROBLEM True (t) or False (f) _____ Currently, both U.S. GAAP and the International Financial Report...
A: Hi student Since there are multiple sub parts, we will answer only first three subparts. If you want...
Q: 1. One Corporation concluded that the fair value of Two Company was P160,000 and paid that amount to...
A: One corporation acquired the assets and liabilities at fair value. The following journal entries wil...
Q: Accounting Question
A: Merchandise sales are to be recorded as sales for sales value and cost of goods sold for inventory r...
Q: Entity A obtained control of Entity B in a business combination. When computing for goodwill, Entity...
A: Business combination is a process in which one entity acquires the control on the operation of the o...
Q: Determining Net Income from Net Cash Flow from Operating Activities Curwen Inc. reported net cash fl...
A: Net income is presented in the income statement of the company where, expenses are deducted from the...
Q: For each of the following pairs of information characteristics, give an example of a situation in wh...
A: Financial accounting:- Financial accounting includes recording, collecting, summarizing and interpre...
Q: Jose made $20,000 in taxable income last year. Suppose the income tax rate is 10% for the first $700...
A: In the given case, only hypothetical income tax slab rate is given (10% and 15%) and there are also ...
Q: Not use excel
A: Under the straight line method of depreciation, the depreciation expense is charged at a fixed rate ...
Q: Juices of Pineapple Company paid $3,600 on June 1, 2020 for a two-year insurance policy and recorded...
A: It is pertinent any expense that is to be recorded in the current period has to consumed by the enti...
Q: Newman Consulting Company maintains Its records on a cash besis. During 2021 the following cash fows...
A: Revenue Earned = Cash received + Ending Accounts receivable - Beginning Accounts receivable = $450,0...
Q: 7. Garachico, Perez, and Burgos formed a partnership on Jan. 1, 2019, and contributed P150,000, P200...
A: Partnership refers to the formal agreement between two or more person who are agreed to carry out th...
Q: Crane Company issues $24000000, 4%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds...
A: Proceeds from the bond issue = Present value of interest + Present value of maturity
