3 Activity Based Costing

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Issue:

Business

 

Written by:

Eva T

 

Date added:

June 8, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 417

 

Was viewed:

6024 times

 

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Essay content:

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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