1. Desired profit = Revenue*10%
=370*10%
=$37
2. Target cost= Revenue- Desired Profit
= 370-37
=$333
Calculating a Target Cost Yuhu manufactures cell phones and is developing a new model with a...
Part 1 Calculating Price by Applying a Markup Percentage to Cost The J. Escobar Law Firm provides various legal services to organizations. J. Escobar has decided to price its jobs at the total variable costs of the job plus 15 percent. The job for a medium-sized dance club client included the following costs: Direct materials $ 5,000 Direct labor (partners and staff accountants) 90,000 Depreciation (using straight-line method) on Integrity’s office building 50,000 Required: Calculate the price charged by The...
please put excel functions used A company is developing a new cell phone and currently has two models under consideration. Historically, 70% of their new phones have had high consumer demand and 30% have had low consumer demand. The below table shows the investment cost and revenue per high and low demands for each model. Model 1 Model 2 Requires $200k investment Requires $175k investment If demand is high, revenue = $500k If demand is high, revenue = $450k If...