Title
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The target cost formula is:
Formula
Amount
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.
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 theMidweek Assignment Submissions Areabythe due date assigned.
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