Q.1 ChemCo has developed a new product, and has consulted with its marketingdepartment, who have determined that the market share will be 20,000 units,and have recommended that a selling price of $60.00 per unit would be app-ropriate. ChemCo has been able to keep the cost per unit at $50.00.The company has spent a total of $900,000 to design and develop this product.Required: Use the above information to compute as follows:1. Compute the expected margin for ChemCo2. Compute the expected turnover3. Compute the ROIExplain why it is necessary to do the above computations, and show howmanagement can use this information for managing operations

Profitability ratios measure the operational efficiency of an entity as these represent the final…

Answered: Q.1 ChemCo has developed a new product,…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter11: Strategic Cost Management

Section: Chapter Questions

Problem 6E: Keith Golding has decided to purchase a personal computer. He has narrowed his choices to two: Brand...

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Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $10,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Show Transcribed Text Implement your model from part (b) in Excel using the principles of good spreadsheet design and find the profit if Cox Electric makes 18,000 new product. If required, round your answer to nearest whole number. For subtractive or negative numbers use a minus sign. (Example: -300)
You have two machines under consideration for an improved automated wrapping process for Snickers Fun Size candy bars as detailed below. (a) Using an AW analysis, determine which should be selected at i = 15% per year. (b) Assume you want machine D to be selected and are willing to extend its estimated life, if necessary. Perform this analysis to ensure D’s selection using factors or a spreadsheet. Machine C D First cost, $ −40,000 −65,000 Annual cost, $/year −10,000 −12,000 Salvage value, $ 12,000 25,000 Life, years 3 6
Please answer these all.
The LolitaSur Company has designed a new product X301 for aerospace industry. Based on internal research and market study. Alerus estimates this new product could be sold for P1,000 er unit. The senior leadership team required a gross profit margin of at least 40% on the selling price to cover the total marketing and administration costs and to generate an acceptable level of profit. Consider the data below on the production cost estimate of the new product.: Direct Material A P200/unit Direct material B P90 per meter; each unit of x301 will require four meters of DM2; but here will be loss in production of 10%of the material used Direct Labor P152/hour; each unit of x301 will require 0.50 hours of direct labor time. However, the company expects that there will be unavoidable idle time equal to 5% of the total labor time paid for. Lelitesut expects that manufacturing overhead will be absorbed into product costs at the rate of P100 per direct labor hour for each active hour worked.…
Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $1.45 per switch. Vista’s CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine A Machine B Annual fixed costs $ 108,900 $ 145,000 Variable cost per switch 0.46 0.20 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 150,000 switches per year and what is the total cost of that alternative?
Premo Pens, Inc., is in the process of developing a newpen to replace its existing top-of-the-line Executive Model.Market research has identified the critical features the pen must have, and it is estimated that customers would be will-ing to pay $30 for a pen with these features. Premo’s produc-tion manager estimates that with existing equipment it will cost $26 to produce the proposed model. The current Execu-tive Model sells for $24 and has a total production cost of $20. A competitor sells a pen similar to the proposed model,but without Premo’s patented easy retract feature, for $28. Itis estimated to cost the competitor $25 to produce. If Premoseeks to earn a 20 percent return on sales on the new model,which of the following represents the target cost for the newpen?a. $26.00.b. $22.40.c. $24.00.d. $19.80.
What is the answer for this number please? Also provide solution as possible. Thank you!
(Original question included in the attached image) The Presidio Company has redesigned one of its products and is deciding on the pricing for the redesigned product. The total product cost to produce the normal volume of 10,000 units is $200,000. Total selling costs are estimated to be $80,000. The target return on investment is 25% and annual investment required to make and sell the normal volume of 10,000 units is $100,000. The company uses the absorption costing approach to compute the mark-up percentage when setting the target price. What is the mark-up percentage? _____________________ a) 48.5% b) 50.0% c) 52.5% d) 90.0% _____________________ I got "C" as my final answer for this question, but just want to make sure it is correct.
I need solution to part D mainly... if you have time you can solve A,B,C otherwise not required... Graph should be neat and clean. The fuel Company in 2022 requires 240,000 units of raw materials. Purchase price raw materials/unit of Rp. 2,000. The cost of ordering is Rp. 150,000/customer, while storage fee of 25% of the purchase price. You are asked to count : a. What is the most economical order quantity (EOQ)? b. How many orders must be made in a year? c. How many days does the company place an order (1 year = 360 days)? d. Draw the curve?
Use this excel file to show formulas used
Im doing it as homework for extra studies, this isnt an assignment, i need help
Company XYZ is conducting an engineering economic analysis to decide whether to make vs purchase position for a necessary element needed ins several products. Now the engineering department has established this information: Option A to purchase 10,000 units annually at a fixed price of $8.50 per unit. The cost of placing the order is insignificant as per the present cost accounting procedure. Option B to manufacture 10,000 units annually with a direct labor cost of $1.50 per unit, manufacturing overhead cost is allotted at 200% of direct labor (which is $3.00 per unit) ) and Direct materials cost at $5.00 per unit. Based on the information, should the unit be purchased or manufactured?

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