Q:Jensen insists that the higher-grade wood is a necessity in terms of the sculpture’s design. She believes that spending an additional $4,000 on better marketing will allow Wood Creations to sell each sculpture for $2,500. If this is the case, will the company’s target return on investment be achieved without any value engineering? Question 1Wood Creations designs, manufactures, and sells modern wood sculptures. Sally Jensen isan artist for the company. Jensen has spent much of the past month working on the designof an intricate abstract piece. Jim Smoot, product development manager, likes the design.However, he wants to make sure that the sculpture can be priced competitively. AlexisNampa, Wood's cost accountant, presents Smoot with the following cost data for theexpected production of 75 sculptures:$ 8,00030,00037,00033,00025,00015,000Design costDirect materialsDirect manufacturing laborVariable manufacturing overheadFixed manufacturing overheadMarketing

A lot of factors affect the sale of a product. Efficient marketing or using superior quality product…

Answered: If this is the case, will the company’s…

Business

Accounting

If this is the case, will the company’s target return on investment be achieved without any value engineering?

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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