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(answered) – 1. Target Costing Oregon Equipment Company wants to develop a newDescriptionSolution downloadThe Question1. Target CostingOregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $600 each. An independent catalog company would handle sales for an annual fee of $3,000 plus $50 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $60 per unit.If company management desires a return equal to 10 percent of the final selling price, what is the target conversion and administrative cost per?unit? Round answer to the nearest cent. $Answer2.Product Pricing: Two ProductsQuality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs. The predicted costs for the year 2009 are as follows:Materials $200,000 $600,000Other 150,000 700,000?Each product uses 50 percent of the materials costs. Based on manufacturing time, 40 percent of the other costs are assigned to the CDs, and 60 percent of the other costs are assigned to the DVDs. The management of Quality Data desires an annual profit of $50,000.(a) What price should Quality Data charge for each disk pack if management believes the DVDs sell for 20 percent more than the CDs??Rounds answers to the nearest cent.?CDs $AnswerDVDs $Answer(b) What is the total profit per product using the selling prices determined in part (a)?Use?negative signs with answers, if appropriate.CDs $AnswerDVDs $Answer3. Computing Markups?The predicted 2014 costs for Osaka Motors are as follows:Variable $ 100,000 Variable $300,000Fixed 220,000 Fixed 200,000?Average total assets for 2014 are predicted to be $5,000,000.(a) If management desires a 12 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answer to the nearest whole percent.)Markup on variable costs?Answer%Markup on manufacturing costsAnswer%(b) If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? (Round your answer to the nearest whole percent.)Markup to cover unassigned costs?Answer%Markup to cover desired profitAnswer%

## (answered) – 1. Target Costing Oregon Equipment Company wants to develop a new

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