Horizon Industries is a price-taker and uses a target- pricing approach. Refer to the following information: Production volume: 1,200,000 units per year Market price: $25 per unit Desired operating income: 12% of total assets Total assets: $15,000,000 What is the desired profit for the year?

Horizon Industries is a price-taker and uses a target- pricing approach. Refer to the following information: Production volume: 1,200,000 units per year Market price: $25 per unit Desired operating income: 12% of total assets Total assets: $15,000,000 What is the desired profit for the year?

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 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: Hello tutor please help me this question

A: Step 1: Definition of Total Manufacturing CostTotal manufacturing cost is the sum of all costs…

Q: 4 PTS

A: Ans. ) Given the question is related to the concept of the learning curve. The learning curve is the…

Q: I want to correct answer accounting question

A: To calculate how much of Mountain Creek Manufacturing's assets are financed with equity, we can use…

Q: Provide correct answer

A: Step 1: Definition of Net IncomeNet Income is the total profit of a company during an accounting…

Q: Provide answers in general accounting question

A: Explanation of Direct Materials Used:Direct materials used refer to the raw materials that are…

Q: Abc

A: To calculate the beginning work in process (WIP), we use the formula for Cost of Goods Manufactured…

Q: Financial Accounting Question

A: Step 1: Define Profitability Index (PI)The Profitability Index (PI) is a financial metric used to…

Q: Problem:87

A: Explanation of Cash Flow Cycle: Also known as the cash conversion cycle, this represents the length…

Q: Please solve this question general Accounting

A: Detailed explanation:Given: 100,000 shares outstanding$ 1.00 dividends per share per quarter next…

Q: What is the book values of the equipment ?

A: Explanation of Book Value:The book value of an asset is its net value on the company's balance…

Q: General accounting question

A: Step 1: Definition of Cash Paid for SalariesCash paid for salaries refers to the actual cash…

Q: Provide Correct Answer of this Financial Accounting Question Don't use ai

A: Problem 1.1Given:Beginning Direct Material Inventory = 180,000Ending Direct Material Inventory =…

Q: ??

A: Important Note: since nothing was mentioned about the rounding off of calculations, please note that…

Q: Blossom Incorporated has acquired additional assets totaling $356,000 during the 2025 fiscal year.…

A: To calculate the change in Blossom Incorporated's liabilities during 2025, we use the accounting…

Q: do fast answer of this General accounting question

A: Part a. • Step 1: Use the Length of the Cash Conversion Cycle Formula• Step 2: Substitute the given…

Q: Needham pharmaceutical has a profit margin

A: Key Concept :DuPont formulaThe DuPont formula is a financial formula that shows how return on equity…

Q: I want to this question answer general Accounting

A: Step 1: Define Dividend PayoutThe dividend payout ratio shows how much of the profit is distributed…

Q: This is general account problem

A: The accounting equation is: Assets=Liabilities+Owner's Equity Rearranged to find Owner's Equity:…

Q: General accounting

A: Explanation for 1: The formula to calculate the profit per share or Earnings per share is:EPS = Net…

Q: Discuss the accounting treatment for asset retirement obligation ?

A: Asset Retirement Obligation: A legal obligation associated with the retirement of a long-lived…

Q: Solve this Accounting problem

A: Explanation of Profit Margin:Profit margin is a financial metric that shows the percentage of…

Q: I want answer with all working format

A: Explanation of EBITDA:EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and…

Q: NO WRONG ANSWER

A: Let's understand what we have:Predetermined overhead rate = $32 per direct labor hourDirect labor…

Q: I want to this question answer general Accounting

A: Step 1: DefinitionsLabor Rate Variance (LRV):The labor rate variance measures the difference between…

Q: What is the contribution margin ratio? ? Financial accounting question

A: Step 1: Define Contribution Margin RatioThe Contribution Margin Ratio is a financial metric that…

Q: not use ai solution given answer General accounting question

A: Step 1: DefinitionDays' Sales in Receivables measures how long it takes a company, on average, to…

Q: Problem related to Financial accounting ?

A: Explanation of Net Income After Taxes:Net income after taxes represents the company's profit…

Q: Which of the following is not a correct expression of the accounting equation? a. Assets Liabilities…

A: Correct Answer:b. Assets = Liabilities Owners Equity. Explanation:The accounting equation is the…

Q: General Accounting Question please answer

A: Approach to solving the question: DataSales $145,000.00 Beginning Inventory $ 20,000.00 Selling…

Q: ?

A: To calculate the beginning work-in-process (WIP) balance, we can use the formula for the cost of…

Q: A parcel of land that was originally purchased for $85,000 is offered for sale at $150,000, is…

A: To analyze the effect of the sale on the seller's accounting equation, we need to determine how the…

Q: Financial Accounting

A: Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that measures the…

Q: General Accounting

A: Step 1: Define Definition of Net Sales and Cost of Goods Sold (COGS)Net Sales: Net sales refer to…

Q: Correct Answer

A: Target costing determines the cost based on the market price and desired profit margin, aiming to…

Q: Job Costing

A: Explanation of Manufacturing Cycle Efficiency (MCE):Manufacturing Cycle Efficiency (MCE) is a key…

Q: Solve this financial accounting problem

A: Explanation of Profit Margin: Profit margin represents the percentage of revenue that becomes profit…

Q: A standard covers master budget typically (a) One month (b) One quarter (c) Five years (d) One year

A: Concept of Master Budget: A master budget is a comprehensive financial plan that consolidates all…

Q: What is it's ROE on these financial accounting?

A: To calculate the Return on Equity (ROE), we use the formula: ROE = Profit Margin × Asset Turnover ×…

Q: What is jorge's gain or loss realized on the machine?

A: Calculation of the Book Value of the machine at the time of SaleBook Value = Purchase Price of…

Q: During FY 2016 Bravo Manufacturing had total manufacturing costs are $520,000. Their cost of goods…

A: To determine the beginning Work-in-Process Inventory for FY 2016, we use the following formula for…

Q: Solution for this High -Low method financial accounting sum

A: Explanation: As per high-low method, the variable cost per unit is calculated using the following…

Q: Do fast answer of this accounting questions

A: Step 1: Definition of Cost of Merchandise PurchasedThe cost of merchandise purchased refers to the…

Q: Weather Balloons, Inc., makes reusable weather-detecting balloons. Because of a recent recession,…

A: To compute the total standard unit cost of one weather balloon, we add up the standard costs for…

Q: Financial accounting question

A: Step 1: DefinitionPresent Value of Future Cash Flow (PVCF):The present value of future cash flow…

Q: Comp Wiz sells computers. During May 2008, it sold 350 computers at a $1,200 average price each. The…

A: To compute the sales price variance and the sales volume variance, we follow these steps: 1. Sales…

Q: ??

A: Explanation of Direct Labor Hours: Direct labor hours represent the time spent by workers directly…

Q: General accounting questions please solve

A: A. Total Manufacturing Cost Assigned to Job A-500 To calculate the total manufacturing cost, we need…

Q: ?!

A: Explanation of Cost of Goods Manufactured (COGM):Cost of Goods Manufactured (COGM) represents the…

Q: Expert need your help

A: The question requires the determination of the total direct labor budgeted cost. Direct labor refers…

Q: General Accounting

A: Step 1: Define Relevant Costs for Special OrdersRelevant costs for special orders are the…

Question

What is the desired profit for the year on these general accounting question?

Horizon Industries is a price-taker and uses a target-
pricing approach. Refer to the following information:
Production volume: 1,200,000 units per year
Market price: $25 per unit
Desired operating income: 12% of total assets
Total assets: $15,000,000
What is the desired profit for the year?

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

What is the desired profit for the year?
What is the desired profit for the year? For this general accounting question
??
Help
Eric Church company is a price taker
Beckham Company has the following information available: Selling price per unit: Variable cost per unit: Fixed costs per year: £400,000 Expected sales per year: 20,000 units What is the expected operating income (i.e. profit) for a year? Select one: O A. £500,000 O B. O C. £700,000 £680,000 £100 £55 O D. £480,000
Solve this general accounting question
Profit-Volume Chart For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit selling price of $125. The maximum sales within the relevant range are $2,500,000. a. Determine the maximum possible operating loss. b. Compute the maximum possible operating profit. c. Construct a profit-volume chart on paper. Indicate whether each of the following levels of sales is in the operating profit area, operating loss area, or at the break-even point. 4,800 units 8,000 units 12,000 units 16,000 units 20,000 units d. Estimate the break-even sales (units) by using the profit-volume chart constructed in part (c). units
Please help me with calculation
Titan Metalworks produces a special kind of metal ingots that are unique, which allows Titan to follow a cost-plus pricing strategy. Titan has $10,000,000 of assets and shareholders expect approximately a 7% return on assets. Assume all products produced are sold. Additional data are as follows: units per year per unit per year Using the cost-plus pricing approach, what should be the sales price per unit? (Round your answer to the nearest cent.) Sales volume Variable costs Fixed costs 400,000 $16 $1,500,000 A. $16.00 OB. $21.50 OC. $1.75 OD. $19.75 (...)
A company is making plans for next year, using cost-volume-profit analysis as its planning tool. Next year's sales data about its product are as follows Selling price P60 Variable manufacturing costs per unit 22.50 Variable selling and administrative costs 4.5 Fixed operating costs (60% is manufacturing costs) P159,500 Income tax rate 30% How much should sales be next year if the company wants to earn profit after tax of P23,100, the same amount that it earned last year?
[The following information applies to the questions displayed below.] Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price Variable costs Fixed costs $ 12.00 per case 5.50 per case 391,950 per year Assume that the company plans to sell 75,300 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. d. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher tha projected. What impact will these cost changes have on operating profit for the year? Will profit…