Based on potential sales of 800 units per year, a new product at Vanguard Company has estimated traceable costs of $1,680,000. What is the target price to obtain a 25% profit margin on sales? A. $2,800 B. $2,400 C. $2,000 D. $1,950 help

Based on potential sales of 800 units per year, a new product at Vanguard Company has estimated traceable costs of $1,680,000. What is the target price to obtain a 25% profit margin on sales? A. $2,800 B. $2,400 C. $2,000 D. $1,950 help

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

See similar textbooks

Related questions

Q: Solve with explanation and accounting question

A: Step 1: Definition of Owner's EquityOwner's Equity is the portion of a company's assets that belongs…

Q: The average total asset amount is?

A: To calculate the average total assets, you add the beginning and ending total assets and divide by…

Q: Please give me true answer this financial accounting question

A: To calculate the expected return on Titan Vest Capital's stock, we use the Capital Asset Pricing…

Q: The adjusted trial balance cash 26,000 for each account open a t account prepare closing entries…

A: I will start the process using the given Cash = $26,000 from the adjusted trial balance. Since you…

Q: Financial Accounting Question please answer

A: Step 1: Define Cost Reconciliation ReportA cost reconciliation report reconciles the total cost…

Q: Please explain the accurate process for solving this financial accounting question with proper…

A: Step 1: Definition of Turnover Ratio (in ROI Context) In the context of Return on Investment (ROI),…

Q: The profit margin would be?

A: Step 1: Calculate Net SalesNet Sales = Sales Revenue - Sales Returns and Allowances - Sales…

Q: Given the solution and accounting question

A: Step 1: Definition of Accounting EquationThe Accounting Equation is the foundation of a company's…

Q: Which of the following is an example of a non-current asset?A) Accounts ReceivableB) InventoryC)…

A: The correct answer is: C) EquipmentExplanation:A non-current asset is an asset that a company…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: Step 1: Definition of Unit Product Cost under Variable Costing Unit Product Cost under Variable…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: Step 1: Definition of DepreciationDepreciation is the process of allocating the cost of a tangible…

Q: How much is the cost per hoodie for this job?

A: Definition of Job-Order Costing:Job-order costing is a costing method used when products are…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Define Profit Using Contribution and Fixed CostsProfit is the financial gain a company makes…

Q: What is the primary purpose of preparing a trial balance? a) To calculate net profit or lossb) To…

A: The correct answer is:b) To check the mathematical accuracy of the ledger accountsExplanation:A…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Step 1: Definition of Investment in Operating Capital Investment in operating capital refers to the…

Q: What is the ending balance in Gavin's meterials inventory account?

A: Definition of Materials Inventory Account:The Materials Inventory account is a current asset account…

Q: I need help in this accounting question. Thank You.

A: Step 1: Definition of Overhead Applied (Long but Brief)Overhead applied refers to the estimated…

Q: Given solution for General accounting question not use ai

A: Step 1: Define Activity-Based Costing (ABC)ABC assigns overhead to products based on the actual…

Q: Financial accounting

A: Step 1: Definition of Accrual AccountingAccrual accounting recognizes revenues when they are earned…

Q: Financial Accounting: At an output level of 45,000 units, you calculate that the degree of operating…

A: Definition Degree of Operating Leverage (DOL):The Degree of Operating Leverage (DOL) measures the…

Q: Which of the following is a characteristic of a corporation?A) Unlimited liability for its ownersB)…

A: A) Unlimited liability for its owners• Incorrect: Corporations are characterized by limited…

Q: Can you explain the process for solving this financial accounting problem using valid standards?

A: Step 1: Definition of Receivables Turnover and Days' Sales in ReceivablesReceivables Turnover…

Q: 6 MARKS

A: Definition of Days Sales Outstanding (DSO):DSO is a financial metric that calculates the average…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: Step 1: Definition of Break-even Sales (in Dollars)Break-even sales in dollars represent the total…

Q: Please provide the correct answer to this general accounting problem using accurate calculations.

A: Step 1: Definition of EBITEBIT (Earnings Before Interest and Taxes) represents a company's operating…

Q: I need help with this general accounting problem using proper accounting guidelines.

A: Step 1: DefinitionsConcept of Gross Profit:Gross profit represents the absolute dollar amount that…

Q: Norwin Co. sells its product for $40 per unit. The variable cost per unit is $24, and fixed costs…

A: To calculate the expected change in operating income due to the increase in sales volume, follow…

Q: What amount of deposits in transit should appear in the June 30 bank reconciliation?

A: Concept of Deposits in Transit:Deposits in transit refer to amounts received and recorded by a…

Q: What is the days sales collected

A: Explanation of Accounts Receivable:Accounts receivable refers to the amount of money owed to a…

Q: I want the correct answer with accounting question

A: Step 1: Definition of Gross MarginGross Margin (also called Gross Profit) is the difference between…

Q: General Accounting

A: Step 1: Definition of Variable OverheadThe total variable overhead is the cost that varies with the…

Q: Answer

A: Definition of Present Value of an Ordinary Annuity:The present value of an ordinary annuity is the…

Q: Need answer general accounting question

A: Step 1: Definition of Straight-Line DepreciationStraight-line depreciation is a method of allocating…

Q: Can you help me solve this general accounting problem with the correct methodology?

A: Definition of Target Pricing:Target pricing is a pricing strategy used by price-takers where the…

Q: Can you solve this general accounting problem with appropriate steps and explanations?

A: Step 1: Definition of Book Value per Share and Earnings per Share (EPS) Book Value per Share is a…

Q: Financial accounting questions

A: Step 1: Definition of Effective Tax Rate on Corporate EarningsEffective Tax Rate on Corporate…

Q: Everest manufacturing reported the following information regarding the materials required to…

A: Concept of Materials Price Variance:Materials price variance measures the difference between the…

Q: What is the answer?

A: Definition of Overhead Allocation:Overhead allocation is the process of assigning indirect costs to…

Q: Please explain the accurate process for solving this financial accounting question with proper…

A: Step 1: Definition of Net IncomeNet Income, also known as net profit or bottom line, is the amount…

Q: Choice correct answer with accounting question

A: Step 1: Definition of Depreciation ExpenseDepreciation expense is the systematic allocation of the…

Q: Accurate answer

A: To calculate the Operating Cash Flow (OCF), we use the formula:Operating Cash Flow (OCF) = Net…

Q: Financial accounting

A: To find the necessary gross profit, use the formula:Gross Profit = Gross Profit Margin × Net…

Q: Can you demonstrate the accurate method for solving this financial accounting question?

A: Step 1: Definition of Markup Based on Selling PriceMarkup Based on Selling Price refers to the…

Q: Can you explain the process for solving this financial accounting question accurately?

A: Step 1: Define Activity-Based Costing (ABC)Activity-Based Costing (ABC) is a costing method that…

Q: I am searching for the accurate solution to this financial accounting problem with the right…

A: Step 1: Definition of Net Income Net Income, often referred to as the bottom line or net profit, is…

Q: I am looking for help with this general accounting question using proper accounting standards.

A: Step 1: Definition of Cost of New Equipment (in a Nonmonetary Exchange)When equipment is acquired…

Q: 4 POINTS

A: To calculate the required sales revenue to achieve a target net income, we can use the following…

Q: Please explain the solution to this general accounting problem using the correct accounting…

A: To find the ending work in process (WIP) inventory, we use the following formula:Cost of Goods…

Q: The actual cost of direct labor per hour is $38.75 and the standard cost of direct labor per hour is…

A: Step 1: Direct Labor Rate Variance: It is the difference between the actual cost of direct labor and…

Q: Can you help me solve this general accounting question using valid accounting techniques?

A: Step 1: Definition of Delivery Cycle TimeDelivery Cycle Time is the total time from when a customer…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals 78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Chillmax must make to earn operating income of 81,900 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1.
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
What is the target price to obtain profit margin on sales?
Need help
What is the target price to obtain profit margin on sales? Accounting question
Profit margin on sales?