MANAGERIAL ACCOUNTING
16th Edition
ISBN: 9781260901320
Author: Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Subject: pricing strategies
The Flower glance shop decided to implement new strategy to increase their flower business, and to ensure their quality and services. These strategies associated with the increase of variable cost from P10.50 to P15.50 and price will rise the price from P25.75 to P30.50. If the base sales level for the restaurant is 600 entrées per week, then the breakeven level of entrée sales that the managers should be considering can be
calculated from the GBE formula will be?
SnowParadise operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 15% return
on investment on the company's $135,000,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. SnowParadise projects
fixed costs to be $36,000,000 for the ski season. The resort serves about 750,000 skiers and snowboarders each season. Variable costs are about $11 per guest.
Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices.
Read the requirements.
Requirement 1. Would SnowParadise emphasize target pricing or cost-plus pricing? Why?
SnowParadise should emphasize a
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approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its good
control over pricing. Of course, they still need to consider…
Cleveland Foods Data Note: You can download
the Excel file containing Cleveland Foods' data
by clicking the above link and perform the
necessary calculations for answering the
upcoming questions. Question 12 (1 point) □
What is the unit contribution of BlueLiq,
considering the given information? $0.70 $2.50 $
1.00 $1.70
$
$
J
0
20% Retail Margin
2.50 Price to consumers (Retail Price)
15% Wholesale Margin
2.00 Price to retailers (Wholesale Price)
$
1.70 Price to Wholesalers
Variable Costs
$ 0.70 per unit
Fixed Costs
Variable Manufacturing Costs
$300,000 annual
$200,000 Corporate Overhead
$250,000 Marketing and Advertising
$750,000 Total Fixed Costs
Cleveland Foods Data
Fixed Manufacturing Costs
Note: You can download the Excel file containing Cleveland Foods' data by clicking
the above link and perform the necessary calculations for answering the upcoming
questions.
Question 11 (1 point).
Listen
4
What is the price at which Cleveland Foods sells BlueLiq to wholesalers?
$1.70
$2.50
$1.00
Chapter 12 Solutions
MANAGERIAL ACCOUNTING
Ch. 12.A - EXERCISE 12A-1 Absorption Costing Approach to...Ch. 12.A - EXERCISE 12A-2 Customer Latitude and Pricing...Ch. 12.A - Prob. 3ECh. 12.A - Prob. 4ECh. 12.A - Prob. 5ECh. 12.A - EXERCISE 12A-6 Value-Based Pricing; Absorption...Ch. 12.A - Prob. 7ECh. 12.A - Prob. 8PCh. 12.A - Prob. 9PCh. 12.A - Prob. 10P
Ch. 12.A - Prob. 11PCh. 12.A -
PROBLEM 12A-12 Absorption Costing Approach to...Ch. 12.A - PROBLEM 12A-13 Value-Based Pricing LO12-10 The...Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - “Variable costs and differential costs mean the...Ch. 12 - 12-6 "All future costs are relevant in decision...Ch. 12 - Prentice Company is considering dropping one of...Ch. 12 - Prob. 8QCh. 12 - 12-9 What is the danger in allocating common fixed...Ch. 12 - 12-10 How does opportunity cost enter into a make...Ch. 12 - 12-11 Give at least four examples of possible...Ch. 12 - 12-12 How will relating product contribution...Ch. 12 - Define the following terms: joint products, joint...Ch. 12 - 12-14 From a decision-making point of view, should...Ch. 12 - What guideline should be used in determining...Ch. 12 - Prob. 16QCh. 12 - Prob. 1AECh. 12 - Prob. 2AECh. 12 - Cane Company manufactures two products called...Ch. 12 - (
Alpha Beta
$30
$...Ch. 12 - Prob. 3F15Ch. 12 - Prob. 4F15Ch. 12 - Prob. 5F15Ch. 12 - (
Alpha Beta
$30
$...Ch. 12 - Prob. 7F15Ch. 12 -
Cane Company manufactures two products called...Ch. 12 - Prob. 9F15Ch. 12 - (
Alpha Beta
$30
$...Ch. 12 - Prob. 11F15Ch. 12 - Prob. 12F15Ch. 12 - (
Alpha ...Ch. 12 - (
Alpha Beta
$30
$...Ch. 12 - (
Alpha Beta
$30
$...Ch. 12 -
EXERCISE 12-1 Identifying Relevant Costs...Ch. 12 -
EXERCISE 12-2 Dropping or Retaining a Segment...Ch. 12 -
EXERCISE 12-3 Make or Buy Decision LO12-3
Troy...Ch. 12 -
EXERCISE 12-4 Special Order Decision...Ch. 12 -
EXERCISE 12-5 Volume Trade-Off Decisions...Ch. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - (
$5.10
$3.80
$1.00
$4.20
$1.50
$2.40
)
EXERCISE...Ch. 12 - Prob. 10ECh. 12 - (
$3.60
10.00
2.40
9.00
$25.00
)
EXERCISE 12-11...Ch. 12 - Prob. 12ECh. 12 - EXERCISE 12-13 Sell or Process Further Decision...Ch. 12 - en
r
Ch. 12 - Prob. 15ECh. 12 - (
$150
31
20
29
3
24
15
$272
$34
)
EXERCISE...Ch. 12 - Prob. 17ECh. 12 - Prob. 18PCh. 12 - PROBLEM 12-19 Dropping or Retaining a Segment...Ch. 12 -
PROBLEM 12-20 Sell or Process Further Decision...Ch. 12 - Prob. 21PCh. 12 - PROBLEM 12-22 Special Order Decisions LO12-4...Ch. 12 -
PROBLEM 12-23 Make or Buy Decision LO12-3
Silven...Ch. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28PCh. 12 - CASE 12-29 Sell or Process Further Decision LO12-7...Ch. 12 -
CASE 12-30 Ethics and the Manager; Shut Dora or...Ch. 12 - CASE 12-31 Integrative Case: Relevant Costs;...Ch. 12 -
CASE 12-32 Make or Buy Decisions; Volume...Ch. 12 - Prob. 33C
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