Galla Inc. operates in a highly competitive market where the market price for its product is $170 per unit. Galla desires a $15 profit per unit. Galla expects to sell 5,000 units. Additional information is as follows: Variable product cost per unit$15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000 Using target costing, what is the target cost?
A. $130.00
B. $145.00
C. $160.00
D. $155.00
E. $135.00
Answer: D
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Basic earnings per share represents the amount of earnings attributable to
a. all common stock and dilutive securities. b. common stock, preferred stock, and all dilutive securities. c. each share of common stock, and options or warrants which convert to common stock. d. each share of common stock outstanding, and any non-conditional conversions and exercises.
Which of the following is a difference between a Subchapter S corporation and a limited liability company?
A) A Subchapter S corporation has no limitation on number of members, whereas a limited liability company limits ownership interests to no more than 35 shareholders. B) In a Subchapter S corporation, each owner has unlimited personal liability for debts of the organization, whereas in a limited liability company, liability of the owners is limited to loss of capital contribution. C) In a Subchapter S corporation, profits are taxed to owners as ordinary income and losses are deducted by them, whereas in a limited liability company, profits are taxed as income to corporation and again as income to owners when distributed as dividends. D) A Subchapter S corporation does not allow the owners control over daily management decisions, whereas a limited liability company does.
Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore,
required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel. Refer to Fact Pattern 1-1 . Assuming that Susan seeks to be a legally astute manager, which of the following is true regarding the advice given by Sam to ignore the regulations pending an investigation? a. Sam is correct that it is unlikely that any investigation will ever occur and that the regulations may be safely ignored. b. Sam is correct only if ABC has not had past investigations because if past investigations have occurred, it is more likely that the company will be the target of future investigations. c. Sam is incorrect but only because safety regulations are concerned. d. Sam is incorrect because a legally astute manager will take a proactive approach to regulations.
A special warranty deed provides the most protection against defects of title.
Answer the following statement true (T) or false (F)