Business, 26.11.2021 21:10 jakebuttone

Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard three-foot chair due to aggressive pricing by competitors. QC's chairs sold for $650 whereas the competition's comparable chair was selling for $570. Winters determined that a price drop to $570 would be necessary to regain market share and reach a targeted annual sales level of 10,000 chairs. Cost data based on sales of 10,000 chairs:

Budgeted QuantityActual QuantityActual Cost
Direct materials (board feet) 88,500 80,000 $1,252,500
Direct labor (hours) 71,600 74,025 875,500
Machine hours (hours) 11,650 11,500 250,500
Finishing and packing (hours) 6,750 6,650 125,500
If the profit per unit is maintained, the target cost per unit is:

A. $81.
B. $171.
C. $181.
D. $276.
E. $226.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 13:50, veronica25681

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

Answers: 2

continue

Business, 22.06.2019 15:40, Fire8615

Colter steel has $5,550,000 in assets. temporary current assets $ 3,100,000 permanent current assets 1,605,000 fixed assets 845,000 total assets $ 5,550,000 assume the term structure of interest rates becomes inverted, with short-term rates going to 10 percent and long-term rates 2 percentage points lower than short-term rates. earnings before interest and taxes are $1,170,000. the tax rate is 40 percent earnings after taxes = ?

Answers: 1

continue

Business, 22.06.2019 17:30, dani4685

One of your new suppliers, kim, has been hearing rumors about your firm’s lack of capability to deliver high quality products and writes an email asking you to address the claims being made. in replying to her, you want to be sure that you are very clear and leave no room for misinterpretation. which of the following aspects of effective communication should you give the most attention? (a) making sure you understand kim’s areas of expertise. (b) supporting your reply with relevant data and facts. (c) establishing your credibility as an expert. (d) paying attention to implied communications.

Answers: 2

continue

Business, 22.06.2019 20:00, hunter3978

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 of merchandise to the supplier before payment was made. 3) the liability was paid within the discount period. 4) all of the merchandise purchased was sold for $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?

Answers: 2

continue

You know the right answer?

Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President f...