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Lens Care Inc

Question 42

Multiple Choice

Lens Care Inc.(LCI) manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars,cameras,and similar equipment (B-13) .
The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools: Lens Care Inc.(LCI) manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars,cameras,and similar equipment (B-13) . The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools: LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows: If the market price for B-13 and F-32 are reduced to $1,695 and $1,095 respectively,and Lens Care wants to maintain market share and profitability,what is the target cost for B-13 and F-32 (round to nearest whole dollar) ? A) A B) B C) C D) D E) E
LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows: Lens Care Inc.(LCI) manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars,cameras,and similar equipment (B-13) . The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools: LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows: If the market price for B-13 and F-32 are reduced to $1,695 and $1,095 respectively,and Lens Care wants to maintain market share and profitability,what is the target cost for B-13 and F-32 (round to nearest whole dollar) ? A) A B) B C) C D) D E) E
If the market price for B-13 and F-32 are reduced to $1,695 and $1,095 respectively,and Lens Care wants to maintain market share and profitability,what is the target cost for B-13 and F-32 (round to nearest whole dollar) ? Lens Care Inc.(LCI) manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars,cameras,and similar equipment (B-13) . The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools: LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows: If the market price for B-13 and F-32 are reduced to $1,695 and $1,095 respectively,and Lens Care wants to maintain market share and profitability,what is the target cost for B-13 and F-32 (round to nearest whole dollar) ? A) A B) B C) C D) D E) E


A) A
B) B
C) C
D) D
E) E

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