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Author Question: Block Island TV currently sells large televisions for $380. It has costs of $290. A competitor is ... (Read 54 times)

Arii_bell

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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


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Marked as best answer by Arii_bell on Mar 6, 2021

babybsemail

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Arii_bell

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Reply 2 on: Mar 6, 2021
:D TYSM


amcvicar

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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