Target Pricing: In Target pricing the pricing of services/product is fixed first. The pricing is fixed on the basis of market research . After fixing the prices the desired profit margin is deducted from prices to get the cost under which industry should opearte to remain a profitable venture. Cost Plus Pricing: In Cost Plus Pricing , the Pricing is decided on the basis of Cost based method. In this first of all variable and fixed cost is added to get total cost . In total Cost the desired profit margin is added to get the pricing of a product. Requirement1 1. Approach to Pricing Rouse Builders should emphasize.

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REQUIRED Study the Statement of Comprehensive Income of Asterix Limited for the three-year period provided below and then answer the following questions: 1.1 Explain the change that possibly took place in the financing activities over the three-year period. (2 marks) 1.2 Calculate the other operating expenses for 2022. (2 marks) 1.3 Calculate the expected cost of sales for 2025 if the budgeted sales are R5 000 000 and the gross margin percent for 2024 is maintained. (4 marks) 1.4 Comment on the cost of sales over the three-year period. (4 marks) 1.5 Comment on the trends that you observe regarding personnel expense and rent expense. (4 marks) 1.6 Provide an interpretation of the operating profit over the three-year period. (4 marks) INFORMATION The Statement of Comprehensive Income of Asterix Limited for three years are provided below: ASTERIX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2024 R 2023 R 2022 R Sales 4 000 000 3 100 000 2 400 000 Cost of sales…

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Question

Chapter 25, Problem E25.12E

To determine

Concept Introduction:

Target Pricing: In Target pricing the pricing of services/product is fixed first. The pricing is fixed on the basis of market research. After fixing the prices the desired profit margin is deducted from prices to get the cost under which industry should opearte to remain a profitable venture.

Cost Plus Pricing: In Cost Plus Pricing , the Pricing is decided on the basis of Cost based method. In this first of all variable and fixed cost is added to get total cost . In total Cost the desired profit margin is added to get the pricing of a product.

Requirement1

1. Approach to Pricing Rouse Builders should emphasize.

To determine

Requirement 2

1. Whether Rouse Builder able to achieve target profit

To determine

Requirement 3

1. The New Cost Plus Price per Home

2. Should Company able to differentiate its product

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REQUIRED Study the Statement of Comprehensive Income of Asterix Limited for the three-year period provided below and then answer the following questions: 1.1 Explain the change that possibly took place in the financing activities over the three-year period. (2 marks) 1.2 Calculate the other operating expenses for 2022. (2 marks) 1.3 Calculate the expected cost of sales for 2025 if the budgeted sales are R5 000 000 and the gross margin percent for 2024 is maintained. (4 marks) 1.4 Comment on the cost of sales over the three-year period. (4 marks) 1.5 Comment on the trends that you observe regarding personnel expense and rent expense. (4 marks) 1.6 Provide an interpretation of the operating profit over the three-year period. (4 marks) INFORMATION The Statement of Comprehensive Income of Asterix Limited for three years are provided below: ASTERIX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2024 R 2023 R 2022 R Sales 4 000 000 3 100 000 2 400 000 Cost of sales…

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