Title: 3 Activity Based Costing

Essay Details

Subject: Business
Author: Marie H
Date: May 28, 2015
Level: University
Grade: A
Length: 2 / 417
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

What would be the maximum purchase price acceptable to the Minnetonka Corporation for the bindings? Support your answer with an appropriate explanation. ? Perfectly competitive companies maximize profits by producing the quantity where the cost is less than or equal to the revenue generated. In this case, each pair costs $69 to buy...

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In this case, each pair costs $69 to buy. The optimal cost for the bindings should not exceed the price per pair ($80.00). Therefore, the maximum allowable price for the bindings should not exceed $80.00 (sale price) - $69.00 (bought manufacturing) = $11.00 3. Instead of sales of 10,000 pair of skis, revised estimates show sales volume at 12,500 pair...

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