Answer Happy

3. Toyota wants to compete with GM's Chevy Cobalt by “reducing the price of its Corolla by 6%. In order to do so costs need to be reduced while still protecting Toyota's mandatory profit margin of 4%. One component of Toyota's Corolla has been identified as opportunity for reducing significant cost, the chassis." Which concept is most closely related to the above quote from Toyota's annual report? Target costing Kaizen costing Experience curve Activity based management 4. The profit is zero when: contribution margin =fixed cost contribution margin = variable cost = variable cost = fixed cost variable cost = revenue

5. IonEx Inc. sells a sing product for $30. Variable costs are $18 per unit and fixed costs total $120,000. Assuming that fixed costs do not change, lonEx's break-even sales ($) would be: O $ $300,000 O $240,000 O $480,000 O $200,000