Target Costing

Help Seve tx 12A Assignment Problem 12A-11 Target Costing [L012-11 of the United States. Management is National Restaurant Supply, Inc. sells restaurant equipment and supplies throughout most f ice cream making machines. Management will negotiate the purchase considering adding a machine that makes sorbet to its line price of the sorbet machine with its Swedish manufacturer the United States for $4.950 of National Restaurant Supply believes the sorbet machine can be sold to its customers in Management At that price, annual sales of the sorbet machine should be 100 units. product lines, sorbet machines would be $650 per machine If the sorbet machine is added to National Restaurant Supply's the company will have to invest $600,000 in inventories and special warehouse fixtures. The variable cost of selling the Required 1 r N onal Restaurant Supply requires a 15% return on investment RO. what is the maximum amount the company would be to pay the Swedish manufacturer for the sorbet machines? 2 The manager who is flying to Swweden to negotiate the purchase price of the machines would like to know how the purchase price of the machines would affect National Restaurant Supply's ROI Construct a chart that shows National Restaurant Supply's ROi as a function of the purchase price of the sorbet machine Put the purchase price on the X-axis and the resulting ROI on the Y-axis Plot the Rfor p chase prices between S3 000 and S4 000 per machine (Cick the plotter tool and drag the first point you want to plot