Hair Care is entering the professional hair dryer market. Research shows that their customers wish to...

 

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Hair Care is entering the professional hair dryer market. Research shows that their customers wish to pay $301 or less for each dryer. The estimated cost per unit for each dryer is $159 and target operating income per unit is $159. The management of Hair Care is considering use of the cost-plus approach rather than the target-cost approach. Cost accountants at the manufacturer have collected the following information: (Click the icon to view the categories.) Read the requirements. Requirement 1. Do you think that it's a good idea for Hair Care to use the cost-plus approach to price the hair dryer? Begin by determining the price that Hair Care would price the hair dryer at using the cost-plus approach. If Hair Care used a cost-plus approach, it would cost the hair dryer at Requirements 1. Do you think that it's a good idea for Hair Care to use the cost-plus approach to price the hair dryer? 2. What strategies could Hair Care's management use to make a profit if the company insisted on using the cost-plus approach to price the hair dryer? Print 。 Done ***** Data table Direct material/unit Direct labor/unit Variable overhead Fixed costs (annually) Estimated production for year one Print Done 11 $ $ $ $ 196,350 3,850 49 32 27 Hair Care is entering the professional hair dryer market. Research shows that their customers wish to pay $301 or less for each dryer. The estimated cost per unit for each dryer is $159 and target operating income per unit is $159. The management of Hair Care is considering use of the cost-plus approach rather than the target-cost approach. Cost accountants at the manufacturer have collected the following information: (Click the icon to view the categories.) Read the requirements. Requirement 1. Do you think that it's a good idea for Hair Care to use the cost-plus approach to price the hair dryer? Begin by determining the price that Hair Care would price the hair dryer at using the cost-plus approach. If Hair Care used a cost-plus approach, it would cost the hair dryer at Requirements 1. Do you think that it's a good idea for Hair Care to use the cost-plus approach to price the hair dryer? 2. What strategies could Hair Care's management use to make a profit if the company insisted on using the cost-plus approach to price the hair dryer? Print 。 Done ***** Data table Direct material/unit Direct labor/unit Variable overhead Fixed costs (annually) Estimated production for year one Print Done 11 $ $ $ $ 196,350 3,850 49 32 27

Answer rating: 100% (QA)

a Cost per unit Would be 159 Direct Materials 49 Direct Labour Per unit 32 Variable Overhead 27 Fixed Costs per unit 51 Total allocated Cost per unit ... View the full answer