that actual costs do not exceed this target cost.
This is the reverse of the way most companies have traditionally approached the pricing decision. Most companies start with their full cost and then add their markup to arrive at the selling price. In contrast to target costing, this traditional approach ignores how much customers are willing to pay for the product.
. Exercise A-1 (30 minutes)
drivers using square or other geometric shapes to position weight farther behind the clubface to boost MOI and produce a higher launch angle.
Equipment manufacturers had looked to adjustability to differentiate their product lines from competing brands. Custom fitting had become very important as golf equipment companies expanded shaft flex options. TaylorMade, Callaway Golf, Ping Golf, and Nic
driver hours = Total number of Truck drivers x drivers hours
= 4 drivers x 1500 hours = 6000 hours
Cost of freight cost = 450,000 / 6000 = $ 75
Secondly, the Midwest did not consider the late payment of customers. According to the information from company data bases, someof their customers paid their invoices late. To recover balances (or lack of cash) the com