Dynamo Company Is a Price-Taker Currently the Cost Structure Is Such That the Company Cannot

question 179

Essay

Dynamo Company is a price-taker.The company produces generators in a highly competitive market; thus,it uses target pricing.The current market price is $600 per unit.The company has $18,500,000 in average assets,and the desired profit is a return of 8% on assets.Assume all products produced are sold.The company provides the following information:
$$\begin{array} { | l | r | l | } \hline \text { Sales volume } & 65,000 & \text { units per year } \\\hline \text { Variable costs } & \$ 500 & \text { per unit } \\\hline \text { Fixed costs } & \$ 7,500,000 & \text { per year } \\\hline\end{array}$$ Currently the cost structure is such that the company cannot achieve its profit objective and must cut costs.If variable costs cannot be reduced,how much reduction in fixed costs will be needed to achieve the desired target? Show all computations.

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Imaginative thoughts or daydreams about sexual activities or desires.

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refer to the biological and psychological energies that influence an individual's desire for sexual activity.

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A conceptual framework identifying different styles of sexual expression and behavior as characterized by the research of McCarthy.

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