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Pricing Strategy And Cost Calculation For RayHot | HWL Essay.

21 Pages / 5,027 Words Published On: 27-09-2021

1. Based in the information contained in Table 1, explain what pricing strategy(ies) HWL will need to adopt for each year: 2019, 2020, or 2021, and why HWL should choose those selected pricing strategy(ies).

2. Calculate the target cost per unit of RayHot that HWL will need to achieve so it can meet the required profit margin of 20 percent on sales for 2019, 2020, and 2021.

3. Calculate the total cost per unit for 2019, 2020, and 2021. To calculate these yearly costs use the combined information in Table 2 and Table 3 plus averaging pre-product 2018 and post selling 2022 costs and adding the average costs across the costs for three years 2019, 2020, and 2021.

4. Compare your target costs per unit to the total cost per unit (requirements 2 and 3). Select the target costs RayHot should adopt in 2018 (before it starts production) to achieve a profit margin of (at least) 20 percent on sales in 2019, 2020 and 2021.

a. Select one of your target costs from requirement 2 and explain why this target cost should be selected before HWL starts producing RayHot in 2018 so that HWL can achieve so its required profit margin of 20 percent on sales (at least) in 2019, 2020 and 2021. 

b. Based on your answer in requirement 4a, what methods of evaluation (value engineering or reengineering) should be adopted to meet the required profit margin of 20 percent on sales (at least) in 2019, 2020 and 2021? 

c. Explain why you decided on the method of evaluation selected in requirement 4b;use calculations to support your decision 

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My Assignment Help (2021) Pricing Strategy And Cost Calculation For RayHot | HWL Essay. [Online]. Available from: https://myassignmenthelp.com/free-samples/acc8802-strategic-applications-of-management-accounting/direct-labour.html
[Accessed 02 October 2023].

My Assignment Help. 'Pricing Strategy And Cost Calculation For RayHot | HWL Essay.' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/acc8802-strategic-applications-of-management-accounting/direct-labour.html> accessed 02 October 2023.

My Assignment Help. Pricing Strategy And Cost Calculation For RayHot | HWL Essay. [Internet]. My Assignment Help. 2021 [cited 02 October 2023]. Available from: https://myassignmenthelp.com/free-samples/acc8802-strategic-applications-of-management-accounting/direct-labour.html.


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