The estimated selling price of a new mobile phone is RO 85. The company wants to earn a markup of 25% on cost. The estimated actual cost is RO 72. The cost gap is: a. RO 4 b. RO 1 c. RO 3 d. RO 2

Q: Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total…

A: Solution:- Calculation of Break even point value($) as  follows under:-

Q: If L'Oso desires a 150% markup on production costs, what is the target cost for the new game? (…

A: Target Cost: A target cost is the maximum amount of cost that can be incurred on a product, however,…

Q: 2. A company can manufacture a product using hand tools. Tools will cost $ 1,000, and the…

A: Here,

Q: If breakeven point is 1,100 units, each unit sells for $32, and fixed costs are $20,000, then on a…

A: The objective of the question is to understand the representation of the breakeven point, selling…

Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with…

A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit

Q: Swifty Corporation is contemplating the production and sale of a new widget. Projected sales are…

A: 1. PROJECTED SALES :  = $360,000 2. DESIRED PROFIT :  = $45,000 3. TOTAL TARGETED COST :  =…

Q: Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi. Oppo Xiaomi RM RM Sales price…

A: The contribution margin is calculated as the difference between sales and variable costs. The…

Q: The estimated selling price of a new mobile phone is RO 110. The company wants to earn a mark up of…

A: Profit = 25% on cost Selling price = Cost + Profit = 100+25 = 125% on cost Target cost = RO 110 /…

Q: roove auto is considering the introduction of a new model of wireless speakers with the following…

A: Lets understand the basics. Introduction:-CVP analysis is used to identify the changes in costs and…

Q: Sheridan Company is using the target cost approach on a new product. Information gathered so far is…

A: The target cost is the maximum amount that a company  will incur on a product, project, or service…

Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…

A: Degree of Operating Leverage = Contribution margin/ Net Income

Q: A company is planning to manufacture rocking chairs. The fixed cost will be for $40,000. The cost…

A: Formulae: Cost Function:C(x)= FC + V(x)where,C=Total CostFC=Total Fixed CostV=Variable cost per…

Q: FRT Company sells each unit for $ 60, variable costs for each unit $ 25, Fixed costs $ 200000 Wants…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Alia Co. can further process Product X to produce Product Y. Product X is currently selling for $20…

A: Step 1: Definition of Differential Cost:If a company is faced with two or more alternatives, the…

Q: A company produces televisions. The cost of producing x televisions per month is given by C(x) =…

A: A company is in the business of production of televisions.The cost of producing televisions is given…

Q: cuming total fixed costs of $30,000, what is the margin of safety in ($) value?

A: The margin of safety: The margin of safety (MOS) is the excess of sales over the break-even sales.…

Q: Grove Audio is considering the introduction of a new model of wireless speakers with the following…

A: Break even point = It is the level of sales wherein the company have no profit no loss. below the…

Q: Vaughn Manufacturing wants to produce and sell a new lightweight radio. Desired profit per unit is…

A: The question is based on the concept of Cost Accounting.Selling price is the combination of the…

Q: Acme Products, Inc. is interested in producing and selling an improved widget. Market research…

A: TOTAL COSTTotal Cost is the cost incurred to manufacturing a product.Total Cost Includes Cost of Raw…

Q: Mazoon Company is producing 30000 units every year and making a profit of RO 450000. The company…

A: Formula: Degree of operating leverage = Contribution margin / Net operating income. Division of…

Q: .00 per unit Variable costs 210.00 per unit Fixed costs 764,000 per year Assume that the…

A: Operating Profit is the difference between fixed expenses and contribution margin. Contribution…

Q: Company XYZ is currently producing and selling 20,000 units. The selling price per unit is $8 while…

A: Current sales = 20000 units Selling Price per unit = $8 Variable Cost Ratio = 20%  Fixed Costs…

Q: The cross over point for two types of machine producing widgets is 625 units. Machine A has a fixed…

A:

Q: Newton cellular manufactures and sells the top line cell phone for the year 2022. Newton has…

A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

Q: Success Electronics LLC is planning to introduce a low cost smart phone with attractive features.…

A: Target cost = RO 30 / 120% Target cost = RO 25

Q: Company XYZ produces and sells wireless earphones . The selling price per unit is $5 and the total…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Exodus automobile company wants to introduce a new motor bike into the market. The estimated price…

A: Target cost = Selling price - Profit

Q: Consider an Android application design company that incurs variable costs of $1,000 per app…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: The owner of shop is contemplating adding a new product which will require additional monthly…

A: Profit (loss) = Quantity x (selling price per unit – Variable Cost per unit) – Fixed Cost…

Q: A company would like to determine various costs and points to aid them in deciding whether to expand…

A: The Break-even point is the level of sales where the fixed cost is equal to the contribution margin.…

Q: A Company wants to introduce new mobile phone into the market. The estimated price of each mobile…

A: When a new product is being introduced into a market, there are several aspects that should be…

Q: Given the following assumptions: Selling price per pair of shoes: $55 Variable costs per pair of…

A: The contribution Margin is calculated as difference between sales and variable cost. The break even…

Q: 20) The estimated selling price of a new mobile phone is RO 55. The company wants to earn a mark up…

A: Profit = 10% on cost Selling price = 110% on cost Target cost = RO 55 / 110% = RO 50

Q: Zaliea company produces hat with a variable cost of RM 5,000 for 500 pieces. Each unit was sold at…

A: For calculation of profit , we need to dedect veriable cost and fixed expences from sales .Profit =…

Q: Your small toy manufacturing facility has the following information: Fixed costs $10,500 Material…

A: Fixed costs = $10,500 Variable cost per unit = $0.375 + $0.019 + $0.095 = $0.489 Profit required =…

Q: Jana's Company produces tie racks. The estimated fixed costs for the year are $288,000, and the…

A: Formula: Contribution margin ratio=Selling price per unit-Variable cost per unitSelling price per…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.