Question : 82.Garden Corporation uses cost-plus pricing with a 30% mark-up. The : 1302811

 

 

82.Garden Corporation uses cost-plus pricing with a 30% mark-up. The company is currently selling 12,000 units at $21.45 per unit. Each unit has a variable cost of $11.50. In addition, the company incurs $60,000 in fixed costs annually. If demand falls to 10,000 units, how much will the company have to charge per unit in order to earn the same annual profit?

A.$22.45

B.$21.45

C.$23.44

D.$22.75

 

83.SawTown Tools uses cost-plus pricing with a 30% mark-up. The company is currently selling 80,000 units at $65 per unit. Each unit has a variable cost of $47. In addition, the company incurs $240,000 in fixed costs annually. If demand falls to 40,000 units and the company wants to continue to charge the same price per unit, what markup percentage is the company using?

A.22.6%

B.26.2%

C.36.1%

D.30.1%

 

84.Clipper Office Furniture uses cost-plus pricing with a 40% mark-up on total cost at capacity. The company is currently selling 40,000 units at $19.60 per unit. Each unit has a variable cost of $9. In addition, the company incurs $200,000 in fixed costs annually. If demand falls to 32,000 units and the company wants to continue to earn a 40% return, what price should the company charge?

A.$15.25

B.$21.35

C.$19.60

D.$6.10

 

85.Ragtown Grill uses cost-plus pricing with a 40% mark-up. The company is currently selling 20,000 units annually, but has a capacity of 30,000 units. Each unit has a variable cost of $15. In addition, the company incurs $60,000 in fixed costs annually. For how much is the company selling each unit?

A.$25.20

B.$21.00

C.$24.00

D.$23.80

 

86.Segundo Office Tech uses cost-plus pricing and produces 100,000 calculators at a total cost of $3.5 million. Total fixed costs are $1.5 million. If the company increases production by 20% and uses a 30% markup, how much will the price per unit be?

A.$32.50

B.$42.25

C.$45.50

D.$54.40

 

87.DT Company uses cost-plus pricing and has $30 per unit in variable costs and $800,000 per year in fixed costs. Demand is estimated to be 200,000 units annually. What is the price if a markup of 30% on total cost is used to determine the price?

A.$34.00

B.$39.00

C.$44.20

D.$43.00

 

88.A company uses cost-plus pricing and has a total cost of $40.00 per unit at a volume of 120,000 units. The variable cost per unit is $25.00. What will the price be if the company expects a volume of 110,000 units and uses a markup of 50%?

A.$41.36

B.$62.05

C.$37.50

D.$60.00

 

89.A company has $6.50 per unit in variable costs and $2.20 per unit in fixed costs at a volume of 40,000 units. If the company uses cost-plus pricing, which of the following should the company use to determine the price?

A.The company should use a unit cost of $8.70 per unit only at a volume of 40,000 units.

B.The company should use a unit cost of $8.70 at any volume level.

C.The company should use a unit cost of $8.70 at any volume within the relevant range.

D.The company should use a unit cost of $6.50 per unit only at a volume of 40,000 units.

 

90.A company has $8.00 per unit in variable costs and $4.00 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 60%, what price should be charged if 60,000 units are expected to be sold?

A.$7.20

B.$18.13

C.$19.20

D.$11.33

 

91.Harp Widgets determined each deluxe widget it produces has a unit variable cost of $15.00, with total fixed costs of $600,000 for the period. Harp expects to sell 60,000 deluxe widgets and has applied a markup percentage of 35%. What contribution margin will Harp earn from the sale of each deluxe widget?

A.$33.75

B.$8.75

C.$18.75

D.$25.75.

 

 

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