Sarah's Boutique is planning to launch a new line of designer handbags. Based on market analysis, management has decided to price each handbag at $250. The company wants to maintain a profit margin of 30% of sales revenue. Calculate the target cost per handbag.
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- General accountingFinancial accountingA furniture's store is considering tow marketing strategies: a loyalty program that would cost $3,000 and increase revenue by $15,000, or a seasonal sale that would cost $5,000 and increase revenue by $25,000. The store's contribution margin is 30%. Which strategy should they pursue if the goal is to maximize ROMI? What about if the goal is to maximize revenue growth?
- Sweet Tastings is considering increasing its selling price to $13 per case. Assuming production and sales decrease by 10%, calculate Sweet Tastings’ return on investment. Is increasing the selling price a good idea?A clothing company has determined that if the price of a T-shirt is K40, then 150 will be demanded by T-shirt wearers. When the price is K45, then 100 T-shirts are demanded by T- shirts wearers.(a) Find the price-demand equation, assuming that it is linear.(b) Find the revenue function.(c) Find the number of items sold that will give the maximum revenue. What is the maximum revenue?(d) What is the price of each item when maximum revenue is achieved?Riverdale Partners wants to introduce a new line of fragrances. Market research indicates that a potential fragrance would sell well in the market priced at $268.80 each. Riverdale requires an operating profit of 28 percent of costs. Required: What is the highest acceptable manufacturing cost for which Riverdale would be willing to produce the fragrance? Highest acceptable manufacturing costs
- Sparkle This! is an online jewelrystore. The owner, Joe Diamond, maintains a 48% target margin at all times. They are considering adding ruby heart pendants to their product line for Valentine's Day. The cost from their supplier is $33. Joe estimates they can sell 54 pendants for Valentine's Day at the price based on their usual target margin. What would be the Total Contribution Margin for the pendants at the Price and Volume that Joe has estimated on Valentine's Day?can you help me withThe Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Demand Next year (units) Debbie Trish Sarah Mike Sewing kit Selling Price per Unit $ 15.50 $ 6.00 51,000 43,000 $ 25.00 36,000 40,000 $ 11.00 326,000 $ 8.10 The following additional information is available: Direct Materials $ 4.40 $ 1.20 $6.59 $ 2.10 $ 3.30 Direct Labor $ 2.70 $ 1.20 $ 4.50 $ 3.30 $0.90 a. The company's plant has a capacity of 118,450 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $6 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $530,000 per year. Variable overhead costs are $3 per direct labor-hour. d. All of the…
- The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company's products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Demand Next year Selling Price Product Debbie per Unit $28.50 $ 6.50 Trish (units) 56,000 48,000 41,000 32,000 331,000 Sarah Mike $ 40.50 $ 16.00 $8.60 Sewing kit The following additional information is available: Direct Materials $ 4.90 $ 1.70 $7.34 $ 2.60 $ 3.80 Direct Labor $4.40 $ 1.28 $ 6.80 $5.20 $ 0.88 a. The company's plant has a capacity of 120,140 direct labor-hours per year on a single-shift basis. The company's present employees and equipment can produce all five products. b. The direct labor rate of $8 per hour is expected to remain unchanged during the coming year. c. Fixed manufacturing costs total $580,000 per year. Variable overhead costs are $5 per direct labor-hour. d. All of the company's…Casual Threads currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $49 each with expected sales of 3,600 tops annually. By adding the fleece tops, management feels the firm will sell an additional 220 pairs of jeans at $59 a pair and 350 fewer T-shirts at $18 each. The variable cost per unit is $36 on the jeans, $9 on the T-shirts, and $21 on the fleece tops. With the new item, the depreciation expense is $27,000 a year and the fixed costs are $62,000 annually. The tax rate is 34 percent. What is the project's operating cash flow? a) $27,789 b) $34,708 c) $36,049 d) $38,419A company operates in a competitive marketplace. They look to the market to determine their selling price. It looks like the market will bear a price of $438. The company has a goal of earning 10% return on sales on each unit. What would their target cost be? Round your answer to the nearest whole dollar.