Multiple Choice
Dennis' TV currently sells small televisions for $180. It has costs of $140. A competitor is bringing a new small television to market that will sell for $150. Management believes it must lower the price to $150 to compete in the market for small televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Dennis' sales are currently 100,000 televisions per year.
-What is the target cost per unit if the company wants to maintain its same profit margin in total dollars before the change and Marketing is correct?
A) $112.50
B) $113.64
C) $123.34
D) $140.00
Correct Answer:
Verified
Correct Answer:
Verified
Q2: How does the total-life-cycle costing approach differ
Q3: What does the breakeven time (BET)metric for
Q4: Breakeven time:<br>A)stresses profitability.<br>B)tracks the entire cost of
Q6: To be profitable,a company must generate revenues
Q7: Guiding the target costing process is a
Q8: Traditional costing begins with:<br>A)the research development and
Q9: By some estimates,80% to 85% of a
Q10: For most products,the majority of the product's
Q11: Concerns about target costing include all EXCEPT
Q46: _ starts with the estimated product costs