W7 - Excel - required return to computer company is 10% of...

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Name: Jena Hartman Timberland Timberland Timberland CPU Company CPU Company CPU Company Total Total Total Cost Element Target Cost Current Cost Difference Target Cost Current Cost Difference Target Cost Current Cost Difference Manufacturing 46 72 -26 46 72 -26 Ordering 4 4 0 4 4 0 Gen and Admin 14 14 0 14 14 0 Installation 25 25 0 25 25 0 Totals 64 90 -26 25 25 0 89 115 -26 Process Timberland Timberland Timberland Proportion of Current Cost Target Cost Difference Total cost % A 9.5 4.8 4.7 64% B 8.5 5.4 3.1 64% C 8 6 2 64% D 46 30 16 64% Totals 72 46 25.8 64% Target Cost Selling price - (required return to computer company)-(required return to Timberland)
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Unformatted text preview: required return to computer company is 10% of its cost from Timberland required return to Timberland is 15% of its highest net selling price 11.1 = (15%) 9.9 = (10%) **must equal target cost Target Cost to Current Cost Ratio Must be Calculated and used to compute target cost $110 - 11.1-9.9 = 89- 25 = 64...
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This note was uploaded on 11/25/2011 for the course ACT 5060 taught by Professor Debroahpendarvis during the Fall '08 term at Nova Southeastern University.

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