
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, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
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