Morrow Corporation Manufactures Part No

question 84

Essay

Morrow Corporation manufactures part no.67,which is used in the production of mountain bikes.Per-unit information about part no.67 follows.
A.Compute the current selling price of part no.67.
A.The current selling price is $36: ($14 + $6 + $7 + $3 = $30;$30 * 120% = $36).
B.If management desired to meet the prevailing market price and maintain the current rate of profit on sales,what must happen to the company's total manufacturing costs? By how much?
B.The company's markup is $6 ($36 - $30),which is 16.67% of the current $36 selling price ($6 / $36).To achieve a 16.67% markup on a $33 selling price,Morrow must reduce its costs by $2.50.

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Definitions:

Enduring Personality Trait

A consistent, long-term characteristic or quality that distinguishes an individual's behavior in various situations.

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The underlying intentions or desires that drive aggressive or antagonistic behaviors towards others.

Stressful Situation

An event or scenario that causes a significant amount of pressure or tension, often leading to physical and psychological strain.

Self-Control

The capability to manage one's emotional states, cognitive processes, and responses when confronted with temptations and spontaneous inclinations.