Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result,market research and competitive pressures influence the determination of their selling price.Their marketing department has done a comprehensive analysis and It looks like a price of$57 would be appropriate given the present business environment.The company has a goal of earning $28 on each unit.What is the target unit cost of each hair dryer? Enter your answers without dollar signs orcommas.

To make a desired amount of profit, a cost is set as a target that cost is called a target unit…

Answered: Columbus Inc. sells a high end hair…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hawk Airways is about to introduce a daily round-trip flight from New York to Los Angeles and is determining how to price its round-trip tickets. The market research group at Hawk Airways segments the market into business and pleasure travelers. It provides the following information on the effects of two different prices on the number of seats expected to be sold and the variable cost per ticket, including the commission paid to travel agents: (Click the icon to view the pricing and ticket information.) Pleasure travelers start their travel during one week, spend at least one weekend at their destination, and return the following week or thereafter. Business travelers usually start and complete their travel within the same work week. They do not stay over weekends. Assume that round-trip fuel costs are fixed costs of $24,000 and that fixed costs allocated to the round-trip flight for airplane-lease costs, ground services, and flight-crew salaries total $188,000. Read the requirements.…
Ellie now had two offers to think about. Her initial reaction was to turn down the special request for 25,000 brochures at $10 per 100. Especially as she did not believe Tyco would realize any repeat or future business from the customer. She also needed to understand her costs versus the cost offered by the small shop to increase Tyco's printing capacity by outsourcing. Should she tell the small shop about the special order request and let them work it out themselves? They might both get what they needed.
Please help me to solve this problem
LO18.1: Understand how most wholesalers and retailers set their prices by using markups. LO18.2: Understand the advantages and disadvantages of average-cost pricing. LO18.3: Know how to use break-even analysis to evaluate possible prices. LO18.5: Understand other demand-oriented factors that influence price setting. Eleven-year-old Mallory is a budding entrepreneur. She is always coming up with new business ideas. In early summer 2018, her latest venture is a lemonade stand. Mallory is focused on making a high level of profits – she was saving for a new bike. Mallory is trying to develop a marketing strategy to help her achieve her goals. Last year Mallory helped a friend with a lemonade stand. This year she wants to run her own business. Her parents expect her to pay for almost everything related to her business. Her dad built her a small lemonade stand – and while he donated his time, he did ask for the $12 in materials needed to build the stand. Mallory had to purchase other…
Dwyran Ltd. manufactures a number of different products and has recently employed Ruth Benton as its management accountant. Ruth is currently looking at the various products and processes within Dwyran Ltd. to increase profitability, as a measure to try to avoid redundancies. Ruth has identified 4 areas of that she would like to look at first and she has asked you to provide her with the following information. Dwyran Ltd. manufacture the Newborough which it sells for £40 a unit. The direct material cost is £8 per unit. Other factory costs are £60,000 each month. The bottleneck factor of the production is the assembly of the unit, which is a labour intensive process. There are 20,000 labour hours available in assembly each month. Each unit of the Newborough takes 2 hours to assemble. Calculate the Newborough’s budgeted rate per factory hour and through put ratio for the month.
Apply mathematical skills around cost structures and appropriate equations to answer the following, inclusive of all associated workings to maximise marks:Opening Inventory + Purchases – Closing Inventory = Cost of Sales (CoS). Bev Smithey makes hand-braided mats, at a cost of $40 per mat, to sell at local craft shows. She has 30 mats on hand for the next show, and expects to sell them all for a total of $1,800.What is Bev’s markup per mat in dollar and percentage terms?

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