This question have two parts. And attachment for the part 2Part 1 : American Printing publishes magazines, catalogs, and retail inserts for distribution in large metropolitan area newspapers. Its larg

This question have two parts. And attachment for the part 2

Part 1 : 

American Printing publishes magazines, catalogs, and retail inserts for distribution in large metropolitan area newspapers. Its largest customer is the New York News Company, for which American Printing prints sells flyers and coupon inserts.

American has contractual agreements with its customers; its current pricing strategy is cost-plus, and customers also agree to a yearly price escalation based on inflation. American Printing completes the escalation based on cost-of-operations increases.

Recently, Face Social Media proposed a bid to the New York News Company for alternative pricing to counter American Printings contract, which will be up for renewal.

To compete against Face Social Media, American Printing will have to employ target costing.

For this discussion:

• What are the differences between cost-plus and target costing approaches to developing appropriate pricing? Discuss the advantages and disadvantages of each.
• How does the duration of the renewed contract impact the approach?
• Are there elements of the value chain that American Printing can leverage to optimize target costing for a mature customer relationship?
• How does the goal of a rate of return impact the target under cost-plus?

Albany Manufacturing Company

Management has decided to reduce direct material and ordering costs by purchasing sub-assembled components and not individual parts. Using the Albany Manufacturing Excel file linked under this assignment in Module 1, you must do the following.

Requirements:

1. Using the Revised Category Costs tab, make the following changes under " Changes" Category. Other categories' costs remain same.
   1. Reduce direct labor rate from $30.00 to $28.00 per unit
   2. Reduce direct labor quantity from 3.00 to 2.65 hours per unit
   3. Reduce receiving and shipping ordering quantity from 100 to 90 units.
   4. Reduce testing and inspection from $2.00 to $1.75 per unit
   5. Reduce rework costs from $20 to $18 per unit
2. Compute total costs for each category
3. Complete Revised Cost Information tab
   1. Calculate total costs
   2. Calculate cost per unit for each category, round to two decimal points

Follow the instructions on the Data tab of the worksheet. Show all calculations within the cells of the Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. You must also include a detailed explanation of each journal entry that you make or do not make on each date to convey your thought process. There should be no hard coding of solutions.

Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

Submit your downloaded and completed Excel file (with your name added to the file name)