Accounting

1.(1)In their analysis, Matthews assumes that the loss of the market constituent is due to the raised harm of nonglare glass, and SGP can take a major market deal out back if it low the price to $2.15 per square foot. From one side, increase prices may be one of reasons that lead to the market share loss. But some factors in addition need to be considered: downturn of the economic environment, service provided by SGP, alternative new products from competitors. yet SGP turns down the price of nonglare glass, it is uncertain that customers will be back. (2) Matthews also assumes that other competitors would not reduce their prices when SGP returns to its original price. It is difficult to try whether competitors will reduce prices or not. Even at a hard time, competitors may make more efforts to attract customers to get their products. Thus lowering prices may be one of the choices. (3) From the introduce 2, SGP assumes that selling & familiar administration expense can be allocated. Generally, selling& general administration expenses cannot be traced. It is a nonmanufacturing represent that is not included in the cost of the goods. Generally, it shows as a total amount in income statement.
2.



The relevant costs to the ratiocination Sparta needs to make are organise material cost, position labor salaries, equipment depreciation, packing and shipping fee, electricity used to make the equipment for nonglare glass. Fix cost is equipment depreciation. Variable costs are direct material cost, packing and shipping fee, electricity used to become the equipment for nonglare glass. Mix cost is direct labor salaries (basic salary asset overtime paid). The per unit costs recalculation is as per attachment. Selling and general administration, corporation overhead belongs to nonmanufacturing cost, thus these costs should not be included in the cost of the goods.
3.The purpose of the price conclusiveness of Sparta is to improve margins. The alternative of the price decision is related to cost...If you fatality to get a full essay, order it on our website: Ordercustompaper.com



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