
Concept Introduction:
Operating Cost: Operating cost means cost incurred by undertaking which doesnot involve in manufactruring but involved in providing the services. For example Transport industry, Hospitals, Hotel, Ski Resort etc.
Target Pricing: In Target pricing the pricing of services/product is fixed first. The pricing is fixed on the basis of
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.
Requirement 1
1. Profit earned by Mountain Run and return on assets
Requirement2
1. New Target Variable Cost

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Chapter 25 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
- I need help with this financial accounting problem using accurate calculation methods.arrow_forwardNonearrow_forwardDakota Manufacturing uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard machine hours. During April, the company used a denominator activity of 40,000 machine hours in computing its predetermined overhead rate. However, 52,000 standard machine hours were allowed for the month's actual production. If the fixed manufacturing overhead volume variance for April was $9,000 unfavorable, then the total budgeted fixed manufacturing overhead cost for the month was $_. HELParrow_forward
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