Market research shows potential customers will buy a particular product at a selling price of $3,100 . If the desired profit is 28 percent of target cost, the company should make the product if the cost does not exceed
a. $3,100.
b. $868.
c. $2,232.
d. $2,422.
D
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A firm is required to estimate a liability for repairs for products sold with a warranty. If the firm's accountants later find that the estimated amount for repairs has been overstated, the correct accounting procedure is to
a. make an adjusting entry to reduce the amount of estimate. b. make a correcting entry because the overstatement is an error. c. show the amount of overstatement on the income statement as a loss. d. do nothing for the year in question and modify the next year's estimate.
What does ZOPA stand for?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) When evaluating a potential investment, managers should use only one measure for making a sound investment decision. 2) Many service, merchandising, and manufacturing firms use discounted cash flow methods to make capital investment decisions. 3) An operational asset used for a long period of time is known as a capital asset. 4) The acquisition or construction of a capital asset is known as a capital investment.
Most business reports fit into two broad categories. List and describe these two categories; then present one original example of each