Sandra owns a small manufacturing company, Tamarisk Camping Stuff Co. The company has been working to perfect a lightweightplastic material to be used for a variety of camping products. Sandra plans to enter the marketplace with a durable, lightweight foldingtable. Similar tables regularly sell for $39-$44 for a 6-foot table, so Sandra realizes that she'll have to stay within that range. Shebelieves her table could sell on the higher end of this range, however, so she is using a target selling price of $44 for planning purposes.Sandra needs to generate an ROI of at least 20% on her invested assets to make this worthwhile in the long term. Her invested assetsare $800,000, and she expects to sell 5,000 tables in her first year of activity.(a)Calculate the target cost for one table.Target cost for one table$(b1)eTextbook and MediaText12Attempts: 1 of 1 usedIf the SG&A portion of that unit cost is estimated to be $7, how much does that leave for the product cost per unit?Product cost$

Target cost is the difference between target sales revenue and target desired return on investment.…

Answered: Sandra owns a small manufacturing…

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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