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NEW QUESTION: 1
Fulford Company applies the target pricing and costing approach. The following information about costs and revenues of Fulford's product are available for the year just ended:
Fulford plans to increase unit sales to 80,000 by reducing the product's unit price to US $320.
If Fulford desires a unit target operating income of 12CYo, by what amount must it reduce the full cost per unit?
A. US $38.40
B. US $32.00
C. US $70.40
D. US $80.00
Unit target operating income is US $38.40 $320 unit target price 12%). Hence, the unit target full cost is US $281.60 $320 - $38.40). The current full cost per unit is US $352.00 [($13,200,000 CGS + $7,920,000 other value chain operating costs) - 60,000 units sold], so the necessary reduction in the full cost per unit is US $70.40 $352.00 - $281.60).
NEW QUESTION: 2
Refer to the exhibit. A network has been planned as shown. Which three statements accurately describe the areas and devices in the network plan? (Choose three.)
A. Network Device A is a switch.
B. Network Device B is a switch.
C. Network Device A is a hub.
D. Network Device B is a hub.
E. Area 2 contains a Layer 2 device.
F. Area 1 contains a Layer 2 device.
Switches use a separate collision domain for each port, so device A must be a switch. Hubs, however, place all ports in the same collision domain so device B is a hub. Switches reside in layer 2 while hubs are layer 1 devices.