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Dugout Water Products sels 2,000 kayaks per year ata price of $460 ner unit. Dugout sell in a highly competitive market and uses target pricing. The company has $1.,000,000 of assets, and the shareholders wish to make a profit of 16% on assets Assume al preducts produced are sold. What is the target full product cost? O A. $16.000,000 OB. $1,067 200 O C. $760,000 O D. $920,000

Dugout Water Products sels 2,000 kayaks per year ata price of $460 ner unit. Dugout sell in a highly competitive market and uses target pricing. The company has $1.,000,000 of assets, and the shareholders wish to make a profit of 16% on assets Assume al preducts produced are sold. What is the target full product cost? O A. $16.000,000 OB. $1,067 200 O C. $760,000 O D. $920,000

FINANCIAL ACCOUNTING
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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Dugout Water Products sells 2,000 kayaks per year at a price of $460 ner unit. Dugout sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets, and the sharaholders wish to make a profit of 16% on assets Assume al products produced are sold. What is the target full product cost? les revenue O A. $16.000.000 ariable costs O B. $1,067 200 Contribution margin O C. $760,000 O D. $920,000 Fixed costs Operating Income (loss) If $50,000 of fixed costs will be eli helmets affect operating income.c Expert Answer Click to select your answer ? Anonymous answered this E 552 ansvwers &18 AM ヘG回 2 Type here to search S/3/2021
Transcribed Image Text:Dugout Water Products sells 2,000 kayaks per year at a price of $460 ner unit. Dugout sells in a highly competitive market and uses target pricing. The company has $1,000,000 of assets, and the sharaholders wish to make a profit of 16% on assets Assume al products produced are sold. What is the target full product cost? les revenue O A. $16.000.000 ariable costs O B. $1,067 200 Contribution margin O C. $760,000 O D. $920,000 Fixed costs Operating Income (loss) If $50,000 of fixed costs will be eli helmets affect operating income.c Expert Answer Click to select your answer ? Anonymous answered this E 552 ansvwers &18 AM ヘG回 2 Type here to search S/3/2021
Armor Sports, Inc has two product lines batting helmets and football helmets. The income statement data for the most recent year is as follows: nue Total Batting Helmets Football Helmets $350 D00 5850,000 (440 000 $410,000 (180 000) $230.000 Sales revenue $500,000 Eosts (150,000) S350,000 (290 000) S60 000 (110 000 S 50 000) Variable costs Contribution margin tion margin (70 000) $280.000 Fixed costs Operating income (loss) What is the effect of dropping football heimets line on the operating ircome of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.) asts ting income (losst O A. Operattng income will increase by $50-000 OB. Operating income will decrease by S60 000 D00 of fixed cosis will be eli ts affect operating income OC Operating income will decrease by $350.000 O D. Operating Income will increase by S70.000 pert Answer Click to setect your answer Anonymousanswered ts 8:18 AM xDジ 5/3/2021 P Type here to search
Transcribed Image Text:Armor Sports, Inc has two product lines batting helmets and football helmets. The income statement data for the most recent year is as follows: nue Total Batting Helmets Football Helmets $350 D00 5850,000 (440 000 $410,000 (180 000) $230.000 Sales revenue $500,000 Eosts (150,000) S350,000 (290 000) S60 000 (110 000 S 50 000) Variable costs Contribution margin tion margin (70 000) $280.000 Fixed costs Operating income (loss) What is the effect of dropping football heimets line on the operating ircome of the company? (Assume that fixed costs remain unchanged and that there would be no adverse effect on other sales.) asts ting income (losst O A. Operattng income will increase by $50-000 OB. Operating income will decrease by S60 000 D00 of fixed cosis will be eli ts affect operating income OC Operating income will decrease by $350.000 O D. Operating Income will increase by S70.000 pert Answer Click to setect your answer Anonymousanswered ts 8:18 AM xDジ 5/3/2021 P Type here to search
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