暨南大学管理学院成本与管理会计课件 Appendix A.ppt

Pricing Productsand Services Appendix A Learning Objective 1 The Economist’s Approach to Pricing Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand The Profit-Maximizing Price The Profit-Maximizing Price The Profit-Maximizing Price The Profit-Maximizing Price The Profit-Maximizing Price The Profit-Maximizing Price The Profit-Maximizing Price Learning Objective 2 The Absorption Costing Approach Setting a Target Selling Price Setting a Target Selling Price Setting a Target Selling Price Determining the Markup Percentage Determining the Markup Percentage Determining the Markup Percentage Problems with the Absorption Costing Approach Problems with the Absorption Costing Approach Problems with the Absorption Costing Approach Learning Objective 3 Target Costing Reasons for Using Target Costing Reasons for Using Target Costing Reasons for Using Target Costing Target Costing Target Costing End of Appendix A Part I Here are the basic equations.Part II The variable selling, general and administrative expenses per unit are $2 and the fixed SGA expenses are $60,000. Recall that Ritter expects to produce and sell 10,000 units.Part III Under these conditions, the markup percent on absorption cost will be 50 percent. If Ritter actually sells 10,000 units at the price of $30 per unit, the ROI on this product will indeed be 20 percent. However, if more than (less than) 10,000 units are sold, the ROI will be higher than (less than) 20 percent. Target costing is the process of determining the maximum allowable cost for a new product and then developing a prototype that can be made for that maximum target cost figure. The equation for determining the target price is shown below: Target cost = Anticipated selling price – Desired profit Two characteristics of prices and product costs: The market (i.e., supply and demand)