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
Other questions on the subject: Business
Business, 23.06.2019 10:00, sneakypanther19
If a business is in need of working capital, one option is to use a(n) that will buy the company's account receivables and then handle their collection for a fee.
Answers: 2
Business, 23.06.2019 11:40, Trucofer8159
Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons, due to the popularity of his local country western band, farmer tony has more students requesting lessons than he has time for if he is to also maintain his farming business. farmer tony charges $25 an hour for his guitar lessons. one spring day, he spends 10 hours in his fields planting $130 with of seeds on his farm. he expects that the seeds he planted will yield $300 worth of wheat a. 130 b. 260 c. 170 d. $-80
Answers: 1
Do you know the correct answer?
Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President f...
Questions in other subjects:
Mathematics, 12.02.2022 07:40
History, 12.02.2022 07:40
