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Social Science Clinic => Accounting => Topic started by: Arii_bell on Mar 6, 2021

Title: Block Island TV currently sells large televisions for $380. It has costs of $290. A competitor is ...
Post by: Arii_bell on Mar 6, 2021

Question 1

All of the following are typical results of value engineering except:
◦ assembling and analyzing competitor's product.
◦ setting the target cost and then designing the product.
◦ changes in material specifications to reduce costs
◦ modifications in process methods

Question 2

Block Island TV currently sells large televisions for $380. It has costs of $290. A competitor is bringing a new large television to market that will sell for $310. Management believes it must lower the price to $310 to compete in the market for large televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Block Island TV sales are currently 110,000 televisions per year.

What is the target cost per unit if target operating income is 35% of sales?
◦ $108.50
◦ $133.00
◦ $201.50
◦ $247.00

Title: Block Island TV currently sells large televisions for $380. It has costs of $290. A competitor is ...
Post by: babybsemail on Mar 6, 2021

Answer 1

assembling and analyzing competitor's product.

Answer 2

$201.50