Assigning indirect costs is easier than assigning direct costs

Dell Productions is a price-taker

The company produces large spools of electrical wire in a highly competitive market; thus, it uses target pricing. The current market price is $825 per unit. The company has $3,100,000 in average assets, and the desired profit is a return of 6% on assets. Assume all products produced are sold. The company provides the following information: Sales volume 100,000 units per year Variable costs $700 per unit Fixed costs $13,000,000 per year Currently the cost structure is such that the company cannot achieve its profit objective and must cut costs. If fixed costs cannot be reduced, how much reduction in variable cost per unit will be needed to achieve the desired target? (Round your answer to the nearest cent.) A) reduction in variable cost per unit by $700.00 B) reduction in variable cost per unit by $125.00 C) reduction in variable cost per unit by $5.00 D) reduction in variable cost per unit by $6.86

The best reason for designating a trust as a life insurance policy beneficiary is to

A) make it possible to manage the policy proceeds for the long-term benefit of an individual or organization B) make it possible to benefit an individual or organization that might have otherwise been ineligible to be a designated beneficiary C) remove the policy proceeds from the insured's taxable estate D) make it possible to accumulate income tax-free interest on the policy proceeds once they are paid into the trust"