None Using a target ROI pricing strategy, and given thefollowing information, what would be the final unitselling price for a product if a manufacturer invests$1,000,000 (U.S.) in a product with unit costs of $10each, expected sales of 20,000 units, and has a desireto achieve 8% ROI?$15O $14O $12O $11O $13

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Answered: Using a target ROI pricing strategy,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are an industry analyst that specializes in an industry where the market inverse demand is P = 100 - 2Q. The external marginal cost of producing the product is MCExternal = 8Q, and the internal cost is MCInternal = 18Q.Instructions: Enter your responses rounded to the nearest two decimal places.a. What is the socially efficient level of output? unitsb. Given these costs and market demand, how much output would a competitive industry produce? unitsc. Given these costs and market demand, how much output would a monopolist produce? unitsd. Which of the following are actions the government could take to induce firms in this industry to produce the socially efficient level of output.Instructions: For correct answers place a check mark. check all that apply Nonrival consumptionunanswered Pollution taxesunanswered Pollution permitsunanswered
Marigold Corp. is using the target cost approach on a new product. Information gathered so far is as follows: Expected annual sales Desired profit per unit Target cost What is the unit selling price? O $0.30 O $0.64 O $0.62 O $0.32 500000 units $0.32 $150000
A company wants to price its product by using target ROR method. If the investment isestimated to be 300,000, target ROR = 15 %, expected demand is 43,125 units. What is the targeted price per unit?
How much should the company set as selling price if it is to achieve the target of 20% RoI?
How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9% interest each year? a. $546,000 O b. $456,427 O c. $645,000 O d. $456,000
You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $55 and $70. The price that you should set would range between $ ☐ and $ ☐. (Round your answers to two decimal places.) If you refine your estimate of the marginal cost to $80, the price you should set would now range between $ and $ (Round your answers to two decimal places.)
Highknob Co is thinking about introducing a new product.Below are the possible levels of unit sales and the probabilities of their occurrence. What is the expected value of the new product? Possible Market Reaction Sales in Units Probabilities Low Response 20 .10 Moderate Response 40 .20 High Response 65 .40 Very High Response 80 .30
Peform a sensitivity analysis by answering the following questions: A. What is the break-even point in sales dollars for RBC? B. What is the margin of safety for RBC? C. What sales dollars would be required to achieve an operating profit of $170,000? $440,000?
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…
If, Total Fixed cost OMR 40000, Selling price per unit OMR 20, and Variable cost per unit OMR 12. What will be the amount of profit if actual sales are OMR 120000?
d. The anticipated levels of sales are the following: Year Unit Sales 1 2,900 2 3,900 4,900 5,900 3 4 If management selects the scale of production with higher fixed cost, what can it expect in years 1 and 2? Round your answers to the nearest dollar. Earnings in year 1: $ Earnings in year 2: $ If the firm selects the scale with higher fixed costs, its earnings in year 1 will be lower than earnings in year 2. If sales reach only 3,900 a year, was the correct scale of operation chosen? Be sure to consider all the factors. The first scale of operation Hide Feedback Partially Correct Icon Key should have been preferred. Check My Work Question 2 of 5 ▸ Save Submit Assignment for Grading
Question 2 (input refer to picture attached) a) Based on Return of Investment (ROI) evaluation, which unit will you recommend to your management to be purchased and why? b) From Life Cycle Cost (LCC) Analysis, would you Brand X or Brand Y crane? What is your recommendation and why? c) Based on the Minimum Acceptable Rate of Return (MARR), if the company hurdle rate is 20 %, would you choose Brand X or Brand Y and why? – include the cashflow diagram

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