Question: The selling price of Sugar has been set at $450 per tonne and at that price the FSC expects to sell 1000 tonnes per week.

The selling price of Sugar has been set at $450 per tonne and at that price the FSC expects to sell 1000 tonnes per week.

The required profit margin is 20% of sales and the expected production cost is $400 per tonne.


Required:

Calculate the target cost gap.

Step by Step Solution

★★★★★

3.34 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

SOLUTION Let s solv... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Three entrepreneurs were lookIng to start a new brewpub near Sacramento, Californla, called Rosevlle Brewing Company (RBC). Brewpubs provlde two products to customers-food from the restaurant segment...

Q:

Assume the same information as in E17-19B for Thomlin Company. In addition, assume that the investment in the Tiger Inc. stock was sold during 2015 for $278,000. At December 31, 2015, the following...

Q:

Assume the same information as in BE5-10 and also that Alshare Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $630,000. Determine the amounts to be reported...

Q:

Assume the same information as in BE5-8 and also that Logan Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $612,000. Determine the amounts to be reported...

Q:

The minor injuries clinic in the emergency room department (Accident and Emergency) at a local hospital uses a flexible budget. This is based upon patients seen as a measure of activity. The number...

Q:

Rocky Gagnon is a 50-year-old journeyman carpenter, laborer, and craftsman. Over the past 30 years, he has worked in almost every job and phase of the house building process. Gagnon is getting older...

Q:

Bernese plc develops and manufactures drills for businesses operating in the oil and gas industry. Although it is committed to maximising the wealth of its shareholders, the business has incurred...

Q:

The directors of the company by which you are employed as an accountant have received the forecast income statement for 2012 which disclosed a net profit for the year of 36,000. This is considered to...

Q:

Your firm has 12 million shares outstanding, and you are about to issue 4 million new shares in an IPO. The IPO price has been set at $16 per share, and the underwriting spread is 8%. The IPO is a...

Q:

The directors of the company by which you are employed as an accountant have received the forecast statement of profit or loss for 2016 which disclosed a net profit for the year of 36,000. This is...

Q:

Feldspar Company uses an ABC system to apply overhead. There are three activity rates: During September, Feldspar worked on three jobs. Data relating to these jobs follow: During September, Jobs...

Q:

One group of households was asked how satisfied they were with their car, while the other group was asked how dissatisfied they were. Results are shown in Table 17.4.7. a. Which group was more likely...

Q:

Trains headed for destination A arrive at the train station at 15-minute intervals starting at 7 A.M., whereas trains headed for destination B arrive at 15-minute intervals starting at 7:05 A.M. (a)...

Q:

Bank regulations fall into several areas. Those designed to promote bank lending in specific segments like housing and farming are referred to as _ _ _ _ _ _ _ _ _ _ _ _ _ . Group of answer choices...

Q:

1. The Department of Revenue wants to add more people to the unit that attempts to collect unpaid taxes through telephone contact. As a budget analyst, what questions would you ask after you receive...

Q:

1.A round of a game consists of rolling a six sided die. If the roll is a 5 or 6, the player wins 5 points, if the roll is a 4 the player wins 2 points, and if the roll is a 1, 2, or 3 the player...

Q:

Suppose a company used the techniques discussed in Chapter 16 to evaluate business unit performance How would an economic climate such as a severe recession affect the effectiveness of these tools...

Q:

Bright Sales, Inc.'s inventory records for a particular development program show the following at January 31 At January 31, nine of these programs are on hand. Joumalize the following for Bright...

Q:

l eco M- '10 @ course.apexlearning.com ae Q Dashboard | ALVS - Part Time Consu... {Wi Apex Learning - Courses Q] Apex Learning ft @ 7 2.3.2 quiz: Reaction Rate '10 @ Apex Learning - Courses Cash ees...

Q:

SECTION A Application Questions (40 marks) Price of sugar will increase by 90cents VAT exclusive per kilogram from today. The new prices of sugar: 1kg $2.30FJ $1.04US 2kg $4.60 $2.08US 4kg $9.20...

Q:

Question 3 The following table shows the wholesale sugar prices of some of the sugar producing nations: Country Sugar Price per KG (USD) Brazil 0.30 India 0.35 Pakistan 0.31 Philippines 0.50 i. List...

Q:

A factory produces cakes, pies, rolls and danishes. The resources required are flour, sugar, meat and fruit. The following table shows the per-unit resource quantities required for each product, the...

Q:

Sweetness Inc. grows and sells fresh sugarcane and sugar. Each yield of sugarcane gives 3,500 pounds and is referred to as a load. The cost of growing and harvesting the sugarcane is $350 per load....

Q:

The selling price of Sugar has been set at $450 per tonne and at that price the FSC expects to sell 1000 tonnes per week. The required profit margin is 20% of sales and the expected production cost...

Q:

Part A (2.5 marks) The selling price of Sugar has been set at $450 per tonne and at that price the FSC expects to sell 1000 tonnes per week. The required profit margin is 20% of sales and the...