Title
=
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The target cost formula is:
Formula
Amount
Explain when the target costing is particularly helpful in deciding whether to produce a given product.
Submission Details: Name your worksheet SU_ACC6345_W3_MW_LastName_FirstInitial.xlsx.
Submit your completed workbook to the Midweek Assignment Submissions Area by the due date assigned.
Grading Criteria
Maximum Points
Computed the target cost for the Slim Slicer.
20
Explained when the target costing is particularly helpful in deciding whether to produce a given product.
10
Justified your calculations.
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources (i.e., APA); and displayed accurate spelling, grammar, and punctuation.
Total:
50
Frenso Cheese Company has developed a new cheese slicer called Slim Slicer. The company plans to sell this slicer through its catalog, which it issues monthly. Given market research, Frenso believes that it can charge $20.00 for the Slim Slicer. Prototypes of the Slim Slicer, however, are costing $22.00. By using cheaper materials and gaining efficiencies in mass production, Frenso believes it can reduce Slim Slicer’s cost substantially. Frenso wishes to earn a return of 30% of the selling price.
Tasks: Compute the target cost for the Slim Slicer.
Submit your completed workbook to theMidweek Assignment Submissions Areabythe due date assigned.
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