Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. meson productions is a price taker. meson produces

Meson Productions is a price taker. Meson produces large spools of electrical wire in a...

60.1K

Verified Solution

Question

Accounting

image

Meson Productions is a price taker. Meson produces large spools of electrical wire in a highly competitive market; thus, the company uses target pricing. The current market price of the electric wire is $770 per unit. The company has $3,000,000 in average assets, and the desired profit is a return of 5% on assets. Assume all products produced are sold. The company provides the following information: Sales volume Variable costs Fixed costs 110,000 units per year $730 per unit $12,000,000 per year If variable costs cannot be reduced, how much reduction in fixed costs will be needed to achieve the profit target? O A. $7,750,000 OB. $7,600,000 O C. $12,150,000 O D. $12,000,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Examine the following book-value balance sheet for Toys INC. The preferred stock currently sells for $30...

Finance
Q

Richard borrowed 50,000 from a bank at 12% (APR) semiannually compounded interest to be repaid in...

Finance
Q

1. Emphysema is a disease that damages alveoli. Describe how this disease would affect a persons...

Medical Sciences
Q

Fill in the blank: In vitro irradiation of macromolecules causes _____ damage to macromolecules. A) Repairable Reversible Irreversible Both...

Biology
Q

P cos 30 0 25 200 Psin 30 62 118

Basic Math
Q

JWG Company publishes Creative Crosswords. Last year, the book of puzzles sold for $10.00 with...

Accounting
Q

Which of the following is a disclosure that a lessee must make within its financial...

Accounting
Q

a markup language is associated with formatting of text files using specific codes called tags...

Accounting
Q

J Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):...

Accounting
Q

Newman manufacturing is considering a cash purchase of the stock of Grips Tool. During the...

Finance
Q

Government and not for profit accounting exercise 3-2

Accounting
Q

You are a supply manager for a major distributor. The CEO has strongly encouraged that...

Accounting