COST ACCOUNTING Question:Jose Ruiz wants to start a company that makes snowboards.Competitors sell similar snowboards for $345 each. Josebelieves he can produce a snowboard for a total cost of $270per unit, and he plans a 30% markup on his total cost.a. Compute Jose's planned selling price.b. Can Jose compete with his planned selling price?

a. Compute Jose's Planned Selling Price Jose's planned selling price is based on a 30% markup on his…

Answered: Question: Jose Ruiz wants to start a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

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Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...

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José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $265 each. Jose believes he can produce a birdhouse for a total cost of $225 per unit, and he plans a 20% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Seling price per unit (Required A Required B >
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $275 each. Jose believes he can produce a birdhouse for a total cost of $235 per unit, and he plans a 20% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price per unit
José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price E per unit Required A Required B >
a retailer wants to add a line of bike carriers to his sports department and plans to sell one model at $39.99. If he can buy a good product for $32.50 less 20%, will he be able to get his usual markup of 42% on the selling price and sell the carrier at the price he set?
You own a furniture manufacturing company. You are looking to expand into glass furniture and need to buy new manufacturing equipment to manufacture this type of furniture. You have researched many suppliers but have found that two machines will best suit your needs. The cost of machine 1 is $90,000, and the cost of machine 2 is $110,000. The estimated net profits the machines will generate are in the attached image. a)Compare the ARR for both machines and decide which machine you should buy. b)Critically evaluate the ARR technique in evaluating investment options.
A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Increase in profit of $1,600 if he buys the rolls Increase in profit of $1,200 if he buys the rolls Decline in profit of $1,200 if he buys the rolls Decline in profit of $1,600 if he buys the rolls
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The president of Midnight Rambler wants to know if he should allow Jack Flash to have the scooters for $120,000. Determine the effect on profits from accepting Jack Flash’s offer. Briefly explain why certain costs should be omitted from the analysis in requirement (a.) Assume Midnight Rambler is operating at capacity and could sell the 300 scooters at its regular markup: Determine the Opportunity Cost of accepting Jack Flash’s offer. Determine the effect on profits of accepting Jack Flash’s offer What other factors should Midnight Rambler consider before deciding to accept the special order?
Tate Inc. and Booth Inc. are two small manufacturing companies that are considering leasing a cutting machine together. If Tate rents the machine on its own, it will cost $26,000. If Booth rents the machine alone, it will cost $14,000. If they rent the machine together, the cost will decrease to $36,000. Q. Calculate Tate’s and Booth’s respective share of fees using the Shapley value method
Show complete solution. James decides to order a homemade peach-mango pie in order to generate funds to assemble a desktop computer for his online classes. The cost of producing a whole pie is Php160, including the ingredients and other expenses. If he wants to have a 78% profit margin, how much should he price the peach-mango pie? What should be the % mark-up?
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Option 1: He needs to rent a kiosk cart in the mall which will cost $600 a month. In addition, there are marketing costs for signage and business cards, which have an initial cost of $1,200. Zach will also need to create a website, Instagram page and Facebook ads that will cost him $200 a month. To start the business, his tools would cost $500. The total repairs would include a flat rate of $30 for an assessment and another $100 to fix the phone. The supplies to complete each phone would cost $40. Option 2: Zach needs a way to source old phones from people who no longer need them. He would pay $50 for a used phone in decent condition and then refurbish it for $40. He would subsequently sell the device for $200. Zach would no longer need to set up a kiosk in the mall, but rather manage everything online. This means that he would need to create a website, Instagram page and Facebook ads which would cost him $200 a month. He would also need to spend $500 on tools to begin. Based on the…

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