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Author Question: Fairhaven Composite Poles manufactures fishing poles that have a price of $125.00. It has costs of ... (Read 59 times)

sjones

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on: Mar 6, 2021

Question 1

Two different approaches to pricing decisions are market based and cost-plus.
◦ true
◦ false

Question 2

Fairhaven Composite Poles manufactures fishing poles that have a price of $125.00. It has costs of $90. A competitor is introducing a new fishing pole that will sell for $115.00. Management believes it must lower the price to $110.00 to compete in the highly cost-conscious fishing pole market. Marketing department believes that the new price will allow Carbon to maintain the current sales level of 200,000 poles per year.

Required: 
a.  What is the target cost for the new price if target operating income is 25% of sales?
b.  What is the change in operating income for the year if only the selling price is changed and costs remain the same?
c.  What is the target cost per unit if the selling price is reduced to $110.00 and the company wants to maintain its same income level?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by sjones on Mar 6, 2021

pami445

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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sjones

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Reply 2 on: Mar 6, 2021
:D TYSM

sarah_brady415

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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