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Author Question: Sales of Granite City Products Inc. have been on a steady decline for the last 12 months. A market ... (Read 59 times)

mydiamond

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on: Mar 6, 2021

Question 1

Relevant costs for target pricing are ________.
◦ variable manufacturing costs
◦ variable manufacturing and variable nonmanufacturing costs
◦ all fixed costs
◦ all future costs, both variable and fixed

Question 2

Sales of Granite City Products Inc. have been on a steady decline for the last 12 months. A market research study conducted revealed that the product of Granite City Products Inc. can be sold only for $440 as opposed to the current market price charged of $540 per unit. Granite City Products Inc. has decided to revise its sales price to $440. The annual sales target volume of the product after price revision is 260 units. Granite City Products Inc. wants to earn 30% on its sales amount.

What are the target sales revenues?
◦ $148,720
◦ $114,400
◦ $80,080
◦ $42,120
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by mydiamond on Mar 6, 2021

aruss1303

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Reply #1 on: Mar 6, 2021
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mydiamond

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Reply 2 on: Mar 6, 2021
:D TYSM

dawsa925

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

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