Charleston Affair uses the product cost concept to price

Question # 00850762 Posted By: wildcraft Updated on: 02/14/2024 09:28 PM Due on: 02/15/2024
Subject Finance Topic Finance Tutorials:
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Charleston Affair uses the product cost concept to price its goods. The company plans to release a new product in the upcoming month. Use the information shown below to determine: (A) Product cost per unit (B) Desired profit (C) Markup percentage (D) Markup per unit (E) Normal selling price per unit

Total product cost \$49,000

\$32,100

Total assets \$120,000

Estimated units produced and sold

14,000

Desired rate of return on assets 10%

Wake Coffee Co. expects for the price of Standard Coffee to be \$12 per pound in 2016 and sell 2,000 pounds. The company owns \$52,000 in assets, with a required rate of return on the assets of 12%. Determine the total target cost the company should achieve using the target costing method.

3. West End Co. is considering an investment in a new project. The project would have an initial start-up fee of \$260,000. The company will incur \$20,000 of additional cash expenses each year due to the project, but will earn income of \$42,000. Calculate the cash payback period, rounding answers to two decimal places.

4. A company expects to generate cash revenues of \$20,000 over the next five years. Calculate the present value of the earnings using the table below if there is a 10% interest rate. Present Value of an Annuity of \$1 at Compound Interest  Year                    10%                             12%                           15%  1                        0.909                           0.893                          0.870  2                        1.736                           1.690                          1.626  3                        2.487                           2.402                          2.283  4                        3.170                           3.037                          2.855

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5                        3.791                           3.605                          3.353  6                        4.355                           4.111                           3.785  7                        4.868                           4.564                          4.160  8                        5.335                           4.968                          4.487  9                        5.759                           5.328                          4.772  10                      6.145                           5.650                          5.019

5. During the previous period, Jeff's Bikes incurs the following costs in a manufacturing department: cost of maintaining equipment, \$5,750; cost of correcting defective goods from customers, \$10,000; cost of rework, \$12,000; cost of design engineering, \$15,000; and cost of product inspections, \$9,000. Prepare a cost of quality report for the company if total sales are \$1,070,000. Also, determine if each of the costs would be considered value-added or non- value-added. Round percentages to one decimal place

Complete: a minimum of 1,200 words and three scholarly sources. Answer questions in essay. Responses for Discuss and Complete sections are to be in APA format.

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1. Solution: Charleston Affair uses the product cost concept to price

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