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New target cost per unit

Please answer all 4 questions and show the work on excel.
Thank you much for your help.

Budgeted Amount Actual Amount Actual Cost
Direct materials $4,200,000 $4,500,000
Direct labor hrs 100,000 125,000 $1,750,000
Machine setups 75,000 75,000 $750,000
Mechanical assembly 375,000 400,000 $5,000,000

Input data (from above):
On-line selling price per unit = $3,000
Competitor's on-line selling price per unit = $2,900
Recommeded selling price by Weekend Golfer = $2,850
Normal sales volume per year by Weekend Golfer = 8,000

10-33 Requirements

1. Calculate the current cost and profit per unit.
2. How much of the current cost per unit is attributable to non-value-added activities?
3. Calculate the new target cost per unit for a sales price of $2,850 if the profit per unit is maintained.
4. What strategy do you suggest for Weekend Golfer to attain the target cost calculated in requirement 3?

Solution

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Input data (from above):
On-line selling price per unit = $3,000
Competitor's on-line selling ...

Solution Summary

Response provides the steps to compute the new target cost per unit

$2.19