Product costs could be found on both the balance sheet and the income statement
Indicate whether the statement is true or false
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Astro, Inc. uses target costing and will soon enter a very competitive marketplace in which it will have limited influence over the prices that are charged. Management and consultants are working to fine-tune the company's sole service, which hopefully will generate a 12% return (profit) on the firm's $24,000,000 asset investment. The following information is available:Hours of service to be provided: 34,000Anticipated variable cost per service hour: $30Anticipated fixed cost: $2,560,000 per yearRequired:A. How much profit must Astro produce to achieve a 12% return?B. Calculate the revenue per hour that Astro must generate to achieve a 12% return.C. Assume that prior to entering the marketplace, management conducted a planning exercise to determine whether a 14% return could be attained
in year no. 2. Can the company achieve this return if (a) competitive pressures dictate a maximum selling price of $195 per hour and (b) service hours, variable cost per service hour, and fixed costs are the same as the amounts anticipated in year no. 1? Show calculations.D. If your answer to part "C" is "no," suggest and briefly describe a procedure that Astro might use to achieve desired results. What will be an ideal response?
A company that uses the net method of recording purchases and a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:
A. Debit Merchandise Inventory $1,600; credit Cash $1,600. B. Debit Accounts Payable $1,800; credit Cash $1,800. C. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. D. Debit Cash $1,600; credit Accounts Payable $1,600. E. Debit Accounts Payable $1,568; debit Discounts Lost $32; credit Cash $1,600.
Which of the following applies to the Strength-Threats quadrant of the SWOT matrix?
A. The local fast-food chain Easy Hot Dogs used its wholesome image to maintain its competitive advantage against stiff competition. B. The local fast-food chain Easy Hot Dogs added a salad bar to maintain its competitive advantage against stiff competition. C. The local fast-food chain Easy Hot Dogs expanded its limited menu to maintain its advantage against stiff competition. D. The local fast-food chain Easy Hot Dogs revised its image of being a cheap-food place to being a wholesome family place to maintain its competitive advantage against stiff competition.
The comparative balance sheet for Silverlight Co. is shown below. Express the balance sheet in common-size percentages. Silverlight CompanyComparative Balance Sheets (in $000)December 31, Year 1?Year 3?Year 3Year 2Year 1Cash$ 49.6$ 34.2$ 35.7Accounts receivable74.485.576.5Merchandise inventory148.8125.491.8Plant assets (net)347.2324.9306.0Total assets$620.0$570.0$510.0????Accounts payable$117.8$ 51.3$ 76.5Bonds payable130.2159.6107.1Common stock266.6279.3265.2Retained earnings 105.4 79.8 61.2Total liabilities and equity$620.0$570.0$510.0
What will be an ideal response?