Oct 04, 2016 · 26) What is the target cost if the company wants to maintain its same income level, and marketing is correct (rounded to the nearest cent)? A) $168.75 B) $170.46 C) $185.00 D) $210.00 Answer: Explanation: y = $1,875,000/11,000 = $170.4545 Diff: 3 Terms: target price, target cost per unit, target operating income per unit B
May 19, 2017 · If the target operating income is 25% of sales, then the target cost should be 75% of sales to achieve the target profit. The 75% of $225 is $168.75 Or simply deduct the target profit of $56.25 (25% of $225) to sales of $225 to get the target costs of $168.75 Sales$225.00100%Less: Cost of Sales ($225 x 75%)$168.7575%Income ($225 x 25%)$ …
Jun 11, 2013 · The computation of target cost if ECC wants to maintain its same income level: Target cost = Cost of goods produced - ( Selling price of ECC - selling price of Competitor) Target cost = $210 - ( $250 - $220) Target cost = $210 - $30. Target cost = $180.
Oct 29, 2019 · 19. What is the target cost if the company wants to maintain its same income level, and marketing is correct (rounded to the nearest cent)? a. $112.50 b. $113.64 c. $123.34 d. $140.00 e. $135.00 Explanation: Current Income = ($180 - $140) * 100,000 = 4,000,000 Let the target cost be Y, so we have the following equation: ($110,000 * $150) – 110,000 * Y = …
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:
Ts too time consuming to apply. Uses only two data points, which may not be representative of normal conditions. Relies totally on the judgment of the person performing the cost analysis. Uses only two data points, which may not be representative of normal conditions.