Custom Shoes Co. has gathered the following information concerning one model of shoe:
Variable manufacturing costs $40,000
Variable selling and administrative costs $20,000
Fixed manufacturing costs $160,000
Fixed selling and administrative costs $120,000
Investment $1,700,000
ROI 30%
Planned production and sales 5,000 pairs
What is the target selling price per pair of shoes?
a) $170
b) $114
c) $142
d) $158
Ans: a) $170
You might also like to view...
What is meant by backdating a stock option?
A. Reaping windfall in the stock market by selling stock based on company's nonpublic information B. Falsifying numbers in the company's annual report to hide losses and inflate the stock prices C. Buying company's stock just before the date of key product launch D. Changing the price in the original option agreement so that the option holder can buy stock at a bargain price E. Re-evaluating a company's stocks to adjust it to a previous date so that the shareholders and employees minimize the losses
Conner believes work is inherently distasteful to most people, and they will attempt to avoid work whenever possible. He would also agree that