Waterbury, Inc. manufactures and sells RF17, a specialty raft used for whitewater rafting. In…

Waterbury, Inc. manufactures and sells RF17, a specialty raft used for whitewater rafting. In 2015, it reported the following:

Required

 1. What was the selling price in 2015? What was the percentage markup on full cost? What was the variable cost per unit?

 2. Waterbury is considering raising its selling price to $348. However, at this price, its sales volume is predicted to fall by 10%. If Waterbury’s cost structure (variable cost per unit and total fixed costs) remains unchanged and if its demand forecast is accurate, should it raise the selling price to $348?

3. In 2016, due to increased competition, Waterbury must reduce its selling price to $315 in order to sell 20,000 units. The manager of the rafts division reduces annual investment to $2,100,000 but still demands a 20% target rate of return on investment. If fixed costs cannot be changed in this time frame, what is the target variable cost per unit?

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!