Question :
111. The Swan Company produces their product at a total cost : 1246947
111. The Swan Company produces their product at a total cost of $43 per unit. Of this amount $8 per unit is selling and administrative costs. The total variable cost is $30 per unit The desired profit is $20 per unit.
Determine the mark up percentage on product cost.
A. 80%
B. 46%
C. 70%
D. 65%
112. The Swan Company produces their product at a total cost of $43 per unit. Of this amount $8 per unit is selling and administrative costs. The total variable cost is $30 per unit The desired profit is $20 per unit.
Determine the mark up percentage on variable cost.
A. 100%
B. 110%
C. 80%
D. 57%
113. Target costing is arrived at by
A. taking the selling price and subtracting desired profit.
B. taking the selling price and adding desired profit.
C. taking the selling price and subtracting the budget standard cost.
D. taking the budget standard cost and reducing it by 10%.
114. Paint Company manufactures Paint X and Paint Y and can sell all it can make of either. Based on the following data, which statement is true?
X
Y
Sales Price
$32
$40
Variable Cost
22
24
Hours needed to process
5
8
A. X is more profitable than Y
B. Y is more profitable than X
C. Neither X nor Y have a positive contribution margin.
D. X and Y are equally profitable.
115. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.
Which product has the highest contribution margin per machine hour?
A. Bales
B. Tales
C. Wales
D. Bales and Tales have the same
116. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.
What is the contribution margin per machine hour for Bales?
A. $7
B. $5
C. $35
D. $28
117. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.
What is the contribution margin per machine hour for Tales?
A. $7
B. $5
C. $28
D. $35
118. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.
What is the contribution per machine hour for Wales?
A. $35
B. $28
C. $17
D. $8.50
119. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.
Assuming that Widgeon Co. can sell all of the products they can make, what is the maximum contribution margin they can earn per month?
A. $64,000
B. $70,000
C. $56,000
D. $34,000
120. Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 7 hours to process, Tales take 4 hours, and Wales take 1 hour.
Assuming that Widgeon produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. What is the maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour?
A. $5,000
B. $7,000
C. $4,000
D. $28,000