6th edition

Question Seven Recalling "A Target Costing Example" starting on page 308 in the text (chapter 8). Assume that the company has made a new market research in early 2020) using the same previously identified eight features of a coffeemaker that are important to customers. The following table shows the new customer level of preferences (ranking from 1: not important to 5: very important): Feature Customer Ranking 1. Coffee tastes and smells like espresso 2. The coffeemaker is easy to take apart and clean 3. Capacity is at least six cups. 4. The coffeemaker has an attractive design 5. The coffeemaker has a clock timer to start automatically at a designated time. 6. The grinder performs well with different kinds of coffee beans. 7. The coffeemaker keeps the coffee warm after making it. 8. The coffeemaker automatically shuts off after a designated time period, Required Redo the following tables (exhibits) using the above new customer ranking, assuming that all other information are the same (no changes): Exhibit 8-7 page (310) Exhibit 8-9 page (312) Exhibit 8-10 page (313) Exhibit 8-12 page (314) (Extra mark) b. Based on the analysis above, suppose the company wants to develop a new product (EXPR) for the same purpose. The following table shows the time table for EXPR with associated numbers (cost and revenues) YOU YL02 YIOS Y 04 201 202 203 204 YOYOYOY3.04 Marked Product du Selling price Margie/ Sales y Contributo MISDA BIBU * 2 ** & ** BV Required Draw an Illustration of Breakeven Time for the new product (EXPR) A com o 2% ! 6 EDITION MANAGEMENT ACCOUNTING Information for Decision Making and Strategy Execution Question Seven Recalling "A Target Costing Example" starting on page 308 in the text (chapter 8). Assume that the company has made a new market research in early 2020) using the same previously identified eight features of a coffeemaker that are important to customers. The following table shows the new customer level of preferences (ranking from 1: not important to 5: very important): Feature Customer Ranking 1. Coffee tastes and smells like espresso 2. The coffeemaker is easy to take apart and clean 3. Capacity is at least six cups. 4. The coffeemaker has an attractive design 5. The coffeemaker has a clock timer to start automatically at a designated time. 6. The grinder performs well with different kinds of coffee beans. 7. The coffeemaker keeps the coffee warm after making it. 8. The coffeemaker automatically shuts off after a designated time period, Required Redo the following tables (exhibits) using the above new customer ranking, assuming that all other information are the same (no changes): Exhibit 8-7 page (310) Exhibit 8-9 page (312) Exhibit 8-10 page (313) Exhibit 8-12 page (314) (Extra mark) b. Based on the analysis above, suppose the company wants to develop a new product (EXPR) for the same purpose. The following table shows the time table for EXPR with associated numbers (cost and revenues) YOU YL02 YIOS Y 04 201 202 203 204 YOYOYOY3.04 Marked Product du Selling price Margie/ Sales y Contributo MISDA BIBU * 2 ** & ** BV Required Draw an Illustration of Breakeven Time for the new product (EXPR) A com o 2% ! 6 EDITION MANAGEMENT ACCOUNTING Information for Decision Making and Strategy Execution