My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
Pricing a Service E4A. Iowa has just passed a law making it mandatory to have every chicken…
Pricing a Service E4A. Iowa has just passed a law making it mandatory to have every chicken inspected at least once a year for a variety of communicable diseases. Cluck Enterprises is considering entering this inspection business. After extensive studies, Cluck’s owner has developed the following annual projections: Direct service labor $275,000 Variable service overhead costs 25,000 Fixed service overhead costs 200,000 Selling expenses 100,500 General and administrative expenses 59,500 Minimum desired profit 100,000 Cost of assets employed 800,000 The owner believes his company could inspect 2,000,000 chickens per year. On average, the company now earns a 6 percent return on assets. 1. Compute the projected cost of inspecting each chicken. 2. Using gross margin pricing, determine the price to charge for inspecting each chicken. 3. Using return on assets pricing, compute the unit price to charge for this inspection service. (Round to two decimal places.)
