Question : 102.A company believes it can sell 2,000,000 units of its : 1302813

 

 

102.A company believes it can sell 2,000,000 units of its proposed new bottle stopper at a price of $16.00 each. If the company desires to make a profit of $3,000,000 on the bottle stopper, what is the target cost for each bottle stopper?

A.$14.50

B.$16.00

C.$17.50

D.$9.67

 

103.Light Bright believes it can sell 40,000 of its newly developed laser lights at a price of $24.00 each. There will be $680,000 in fixed costs associated with the laser light. If the company desires to make a profit of $100,000 on the laser light, what is the target variable cost for each laser light?

A.$4.50

B.$32.50

C.$28.33

D.$8.50

 

104.A company believes it can sell 8,000 units of its proposed new garage door opener at a price of $100 each. If the company desires to make a profit of 30% of selling price on the garage door opener, what is the target cost per opener?

A.$130

B.$110

C.$70

D.$30

 

105.Mays Tools believes it can sell 80,000 of its proposed new Dirt Dodgers at a price of $50 each. If the company desires to make a profit of 60% of selling price, what is the target variable cost per Dirt Dodger?

A.$25.00

B.$30.00

C.$31.25

D.There is not enough information provided to determine the answer.

 

106.Clinton Creations believes it can sell 10,000 of its proposed new waterproof camera at a price of $200 each. There will be annual fixed costs associated with developing, marketing and manufacturing the camera of $540,000. If the company desires to make a profit of 40%, how much is the target variable cost per camera?

A.$80

B.$120

C.$66

D.There is not enough information provided to determine the answer.

 

107.Tire Kingdom requires a 60% profit margin on it dirt bike racing tires. At a price of $78 per tire the company expects to sell 16,000 tires. How much is the company’s target cost on each tire?

A.$31.20

B.$48.75

C.$130.00

D.$46.80

108.Mason Kitchenware requires a 30% profit margin on the selling price of its jar openers. At a price of $16 per opener, the company expects to sell 8,000 openers. Total fixed costs are expected to be $28,000. How much is the target cost per jar opener?

A.$17.30

B.$11.20

C.$7.70

D.$20.80

 

109.A new product is being designed by an engineering team at Gray Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $135 per unit. The company requires a profit of 30% of selling price. How much is the target cost per unit?

A.$175.50

B.$81.00

C.$40.50

D.$94.50

 

110.Sunshine Travel is designing a travel mug and has determined that a price of $8 will be attractive in the marketplace. The company seeks to earn a profit of 30% percent of selling price, and estimates it can sell 21,000 mugs. Total fixed costs are expected to be $23,100. How much is the target cost per mug?

A.$2.40

B.$5.60

C. $6.70

D.$4.50

 

111.Sunshine Travel is designing a travel mug and has determined that a price of $8 will be attractive in the marketplace. The company seeks to earn a profit of 30% percent of selling price, and estimates it can sell 21,000 mugs. Total fixed costs are expected to be $23,100. By how much will the target cost change per mug if the profit is raised to 40% instead of 30%?

A.A decrease of $0.80

B.An increase of $0.80

C.An increase of $0.45

D.A decrease of $3.70

 

 

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