I need answer of this question general accounting Tom Gilgen is considering the production of a new line of jeans.Based on preliminary market research, management thedecided that each pair of jeans should be priced at $170.Furthermore, management believes that the profit marginshould be 25 percent of sales revenue.What is target cost?A) $127.50B) $62.00C) $112.00D) $95.75

Step 1: Define Profit MarginProfit Margin is the percentage of profit over the net sales. These is…

Answered: Tom Gilgen is considering the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

See similar textbooks

Similar questions

Need Help
Question: The Savannah Shirt Company is considering adding a new product line, a cloth shopping bag with custom screen printing that will be sold to grocery stores. If the current market price of cloth shopping bags is $1.25 and the company desires a net profit of 40%, what is the target cost? The company estimates the full product cost of the cloth bags will be $0.60. Should the company manufacture the cloth bags? Why or why not?
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) $38,419
A 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?
After conducting a market research study, Magnificent Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $270. The annual target sales volume for interior doors is 29,000. Magnificent has target operating income of 40% of sales. What are target sales revenues? A. $4,698,000 B. $3,132,000 C. $10,962,000 D. $7,830,000
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
Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive pressures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $61 would be appropriate given the present business environment. The company has a goal of earning $30 on each unit. What is the target unit cost of each hair dryer? Enter your answers without dollar signs or commas. ASUS 13 f4 E3 X 19 OLF 11 (12 3. & 4. 5 7. 8. E T. Y. F G H K t6 立

Burke's Corner 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 $47 each with expected sales of 3,500 tops annually. By adding the fleece tops, management feels the firm will sell an additional 205 pairs of jeans at $57 a pair and 340 fewer T-shirts at $18 each. The variable cost per unit is $25 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 21 percent. What is the project's operating cash flow? Multiple Choice $25,815 $12,495 $36,180 $20,980 $31,345
Burke's Corner 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 $52 each with expected sales of 3,750 tops annually. By adding the fleece tops, management feels the firm will sell an additional 230 pairs of jeans at $62 a pair and 365 fewer T-shirts at $23 each. The variable cost per unit is $30 on the jeans, $14 on the T-shirts, and $26 on the fleece tops. With the new item, the depreciation expense is $32,000 a year and the fixed costs are $67,000 annually. The tax rate is 40 percent. What is the project's operating cash flow? A) $33, 545B) $26, 630C) $28, 655
A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $205 per pair and cost $164 per pair in variable costs to make. 1. Compute the contribution margin per pair. 2. Compute the contribution margin ratio. 3. Describe what the contribution margin ratio reveals about this new jeans line.
A jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make. Fixed costs total $120,000. If 5,000 units are produced and sold, what does the income equal?
Burke's Corner 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 $55 each with expected sales of 3,900 tops annually. By adding the fleece tops, management feels the firm will sell an additional 245 pairs of jeans at $65 a pair and 380 fewer T-shirts at $26 each. The variable cost per unit is $33 on the jeans, $17 on the T-shirts, and $29 on the fleece tops. With the new item, the depreciation expense is $35,000 a year and the fixed costs are $70,000 annually. The tax rate is 21 percent. What is the project's operating cash flow? $28,328 $26,084 $39,596 $30,188 $35,648 Please answer fast i give you upvote.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Excel Applications for Accounting Principles

Accounting

ISBN:

9781111581565

Author:

Gaylord N. Smith

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS