Metropolitan, Inc Required:
A

question 124

Essay

Metropolitan, Inc., sells one of its products for $40 each. Sales volume averages 2,000 units per year. Recently, its main competitor reduced the price of its product to $28. Metropolitan expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 2,000) is as follows:
$\begin{array}{lrr}&SQ&AQ&\text { Actual Q}\\\text { Materials (pounds) } & 4,900 & 5,000&\$20, \\\text { Labor (hours) } & 1,200 & 1,250 &10,\\\text { Setups (hours) } & 0 & 200&6, \\\text { Material handling (moves) } & 0 & 350&2, \\\text { Warranties (number repaired) } & 0 & 250&10,\end{array}$
Required:
a.Calculate the target cost for maintaining current market share and profitability.
b.Calculate the non-value-added cost per unit.
c.If non-value-added costs can be reduced to zero, can the target cost be achieved?

Realize the value of researching professions, industries, companies, and managers for job applications.

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Understand the varying formats of résumés and the purposes of each.

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Cash

Money in the form of coins or banknotes, especially that held by a person or business.

Stock Investments

Financial assets referring to shares purchased in other companies intended for income generation or capital gains.

Cost Method

An investment accounting approach where the investment is recorded at cost and adjusted only for dividends received, not market value changes.