Nash Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $58. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $33 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) Your answer is correct. If Nash requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base $ 1250000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nash Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up
with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of
each of the four types listed, above) for $58. This represents a savings to the consumer of 15% off regular, individual prices for
the items. The company has been operating within its target cost for all of these products, which have a combined total of $33 per
bundle. The proposal includes a target sales volume of 10,000 bundles.
(a)
Your answer is correct.
If Nash requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have?
Asset base
1250000
Transcribed Image Text:Nash Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $58. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $33 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) Your answer is correct. If Nash requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base 1250000
If Nash recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $123,000) in the
coming year to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places,
e.g. 15.25.)
New target cost per unit
$
Transcribed Image Text:If Nash recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $123,000) in the coming year to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places, e.g. 15.25.) New target cost per unit $
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