Question : 136.The reasons for using the variable-cost approach include all of : 1311810

 

136.The reasons for using the variable-cost approach include all of the following except this approach

a.avoids arbitrary allocation of common fixed costs to individual product lines.

b.is more consistent with cost-volume-profit analysis.

c.provides the most defensible bases for justifying prices to all interested parties.

d.provides the type of data managers need for pricing special orders.

 

 

a137.Maggie Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit is $15. Variable selling and administrative costs per unit are $4, while fixed selling and administrative  costs per unit are $6. Maggie desires an ROI of $7.50 per unit. If Maggie Co. uses the absorption-cost approach, what is its markup percentage?

a.8.33%

b.16.67%

c.25%

d.50%

 

 

a138.Maggie Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit is $10. Variable selling and administrative costs per unit are $5, while fixed selling and administrative  costs per unit are $2. Maggie desires an ROI of $8 per unit. If Maggie Co. uses the variable-cost approach, what is its markup percentage?

a.30%

b.50%

c.80%

d.100%

 

 

a139.Papillon Co. has determined the following per unit amounts:

Direct materials$30Fixed selling and administrative$60

Direct labor36Variable overhead24

Desired ROI33Variable selling and administrative15

Fixed overhead45

The cost base using the absorption-cost approach is

a.$90.

b.$105.

c.$195.

d.$135.

 

 

a140.Papillon Co. has determined the following per unit amounts:

Direct materials$30Fixed selling and administrative$60

Direct labor36Variable overhead24

Desired ROI33Variable selling and administrative15

Fixed overhead45

The markup percentage using the absorption-cost approach is

a.131%.

b.102%.

c.90%.

d.80%.

 

 

a141.Papillon Co. has determined the following per unit amounts:

Direct materials$30Fixed selling and administrative$60

Direct labor36Variable overhead24

Desired ROI33Variable selling and administrative15

Fixed overhead45

The target selling price using the absorption-cost approach is

a.$351.

b.$243.

c.$162.

d.$371.

 

 

a142.Papillon Co. has determined the following per unit amounts:

Direct materials$30Fixed selling and administrative$60

Direct labor36Variable overhead24

Desired ROI33Variable selling and administrative15

Fixed overhead45

The cost base using the variable-cost approach is

a.$90.

b.$105.

c.$195.

d.$135.

 

 

a143.Papillon Co. has determined the following per unit amounts:

Direct materials$30Fixed selling and administrative$60

Direct labor36Variable overhead24

Desired ROI33Variable selling and administrative15

Fixed overhead45

The markup percentage using the variable-cost approach is

a.131%.

b.102%.

c.90%.

d.80%.

 

 

a144.Papillon Co. has determined the following per unit amounts:

Direct materials$30Fixed selling and administrative$60

Direct labor36Variable overhead24

Desired ROI33Variable selling and administrative15

Fixed overhead45

The target selling price using the variable-cost approach is

a.$311.85.

b.$207.90.

c.$212.10.

d.$242.55.

 

a145.Alfredo Co. has collected the following per unit data:

Direct labor$8Variable selling and admin.$3

Direct materials5Fixed overhead1

Variable overhead4Fixed selling and admin.7

The markup percentage is 120%. What is the markup amount under the variable-cost approach?

 

a.$21.60

b.$24.00

c.$20.40

d.$33.60