ZuoTi.Pro
Question

Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to...

Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Mesa believes that it can charge $22 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $27. By using cheaper materials and gaining efficiencies in mass production, Mesa believes it can reduce Slim Slicer's cost substantially. Mesa wishes to earn a return of 35% of the selling price.



Compute the target cost for the Slim Slicer. (Round answer to 2 decimal places, e.g. 10.50.)

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Target sales price = Target cost + Markup

Target cost = Target sales price - Markup

= 22 - (22*35%)

= 22 - 7.70

= 14.30
0 0
Add a comment
Know the answer?
Add Answer to:
Mesa Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Culver Cheese Company has developed a new cheese slicer called the Slim Slicer. The company plans...

    Culver Cheese Company has developed a new cheese slicer called the Slim Slicer. The company plans to sell this slicer through its monthly catalogue. Given market research, Culver management believes the company can charge $30 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $35. By using cheaper materials and gaining efficiencies in mass production, management believes Culver can reduce the Slim Slicer’s cost substantially. The company wants to earn a return of 25% of the selling...

  • mework i Saved Turtle Inc. has developed a new and improved widget. The company plans to...

    mework i Saved Turtle Inc. has developed a new and improved widget. The company plans to sell the product through an existing website. Turtle's marketing department believes the product will sell for $80. Turtle's goal is a 40 percent profit margin on the widget Required: 1. If current prototypes cost $49.50 to produce, will Turtle meet its profit goal? O No Yes 2. Calculate the target cost necessary for Turtle to earn 40 percent profit. Target Cost

  • 1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on...

    1. Alaa works for a pharmaceutical company that has developed a new drug. The patent on the drug will last 17 years. She expects that the drug’s profits will be $2 million in its first year and that this amount will grow at a rate of 5% per year for the next 17 years. Once the patent expires, other pharmaceutical companies will be able to produce the same drug and competition will likely drive profits to zero. What is the...

  • NEW Q1. Sheila is a managerial accountant who has discovered that her company is violating enviro...

    NEW Q1. Sheila is a managerial accountant who has discovered that her company is violating environmental regulations of a third world country in its production of rubber at a plant in that country. Upper management is unaware of the violation, but her immediate superior is involved. Sheila has discussed this issue with her supervisor, and the supervisor has advised her to remain quiet about the matter. Sheila reasons that she should do nothing because her supervisor is her immediate authority...

  • Case 5 Auburn Circular Club Pro Rodeo Roundup Developed by Jess ica Jonson Frazier Eastern Kentucky...

    Case 5 Auburn Circular Club Pro Rodeo Roundup Developed by Jess ica Jonson Frazier Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas The Business Situation When she was asked t Shelley Jones became president-elect of the Circular Club of Auburn, Kansas o suggest a new fundraising activity for the club. After a consider- roposed that the Circular Club sponsor a pro- amount of research, Shelley p fessional rodeo. In her presentation to the club, Shelley said that...

  • The administration of President Barack Obama has made Patient Protection and Affordable Care Act, often called...

    The administration of President Barack Obama has made Patient Protection and Affordable Care Act, often called “Obamacare”, its chief domestic accomplishment and the centerpiece of Obama’s legacy. Essential to Obama’s health care reform plan is Healthcare.gov, a health insurance exchange Web site that facilitates the sale of private health insurance plans to U.S. residents, assists people eligible to sign up for Medicaid, and has a separate marketplace for small businesses. The site allows users to compare prices on health insurance...

  • Case 2: Going to The X-Stream Gil Reihana is the chief executive officer of X-Stream, an...

    Case 2: Going to The X-Stream Gil Reihana is the chief executive officer of X-Stream, an Auckland-based company that assembles personal computers for the New Zealand and Australian markets, and sells them through a number of chain stores and independent retailers. He started the company six years ago, at the age of 25, after graduating from university with a Bachelor’s degree in Information Technology and Management. To establish the company, Reihana invested $300 000 he had inherited and persuaded various...

  • Please read case article, "Attention Kmart Shoppers? Into and out of Bankruptcy" and help me come...

    Please read case article, "Attention Kmart Shoppers? Into and out of Bankruptcy" and help me come up with a solution for the case as well as action steps to implement the solution! Thank you!! ATTENTION KMART SHOPPERS? Former Kmart CEO, Charles C. Conaway, failed in his 19-month effort to revive the iconic firm, resulting in the largest retailing bankruptcy filing in history on January 22, 2002 (Davies, et al., 2002). On March 11, 2002, bankrupt Kmart named James B. Adamson...

  • 4. Perform a SWOT analysis for Fitbit. Based on your assessment of these, what are some strategic options for Fitbit go...

    4. Perform a SWOT analysis for Fitbit. Based on your assessment of these, what are some strategic options for Fitbit going forward? 5. Analyze the company’s financial performance. Do trends suggest that Fitbit’s strategy is working? 6.What recommendations would you make to Fitbit management to address the most important strategic issues facing the company? Fitbit, Inc., in 2017: Can Revive Its Strategy and It Reverse Mounting Losses? connect ROCHELLE R. BRUNSON Baylor University MARLENE M. REED Baylor University in the...

  • Discussion questions 1. What is the link between internal marketing and service quality in the ai...

    Discussion questions 1. What is the link between internal marketing and service quality in the airline industry? 2. What internal marketing programmes could British Airways put into place to avoid further internal unrest? What potential is there to extend auch programmes to external partners? 3. What challenges may BA face in implementing an internal marketing programme to deliver value to its customers? (1981)ǐn the context ofbank marketing ths theme has bon pururd by other, nashri oriented towards the identification of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT