WellminusBread Grain Company is a priceminus
taker
and uses target pricing. The company has just done an analysis of its​ revenues, costs, and desired profits and has calculated its target full product cost. Assume all products produced are sold. Refer to the following​ information:
Target full product cost

​$510,000

per year
Actual fixed cost

​$280,000

per year
Actual variable cost

​$2

per unit
Production volume

​150,000

units per year
Actual costs are currently higher than target full product cost. Assuming that fixed costs cannot be​ reduced, what is the target variable cost per​ unit? (Round your answer to the nearest​ cent.)
A.
​$2.00
B.
​$3.40
C.
​$1.87
D.
​$1.53

From anderson and dahlin, ch1 question 1: suppose a computer system and all of its applications are completely bug free. suppose further that everyone in the world is completely honest and trustworthy. in other words, we do not need to consider fault isolation.

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?