Whispering Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager,...
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Whispering Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $59. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $38 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) If Whispering requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base $ If Whispering recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $126,000) in the coming year to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places, e.g. 15.25.) New target cost per unit $ Whispering Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $59. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $38 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) If Whispering requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base $ If Whispering recognizes that it will need to invest in at least two new pieces of equipment (at a total cost of $126,000) in the coming year to facilitate this bundling process, what will be the new target cost per unit? (Round answer to 2 decimal places, e.g. 15.25.) New target cost per unit $
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Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118033890
3rd Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
Posted Date:
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