Question : 84. When using the product cost concept of applying the cost-plus : 1227041

84. When using the product cost concept of applying the cost-plus approach to product pricing, what is included in the markup? A. Desired profitB. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profitC. Total costs plus desired profitD. Total selling and administrative expenses plus desired profit

85. When using the variable cost concept of applying the cost-plus approach to product pricing, what is included in the markup? A. Total costs plus desired profitB. Desired profitC. Total selling and administrative expenses plus desired profitD. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit

86. What cost concept used in applying the cost-plus approach to product pricing covers selling expenses, administrative expenses, and desired profit in the “markup”? A. Total cost conceptB. Product cost conceptC. Variable cost conceptD. Sunk cost concept

87. What cost concept used in applying the cost-plus approach to product pricing includes only desired profit in the “markup”? A. Product cost conceptB. Variable cost conceptC. Sunk cost conceptD. Total cost concept

88. What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the “cost” amount to which the markup is added? A. Variable cost conceptB. Total cost conceptC. Product cost conceptD. Opportunity cost concept

89. Contractors who sell to government agencies would be most likely to use which of the following cost concepts in pricing their products? A. Variable costB. Product costC. Total costD. Fixed cost

90. The target cost approach assumes that: A. markup is added to total costB. the selling price is set by the marketplaceC. markup is added to variable costD. markup is added to product cost

91. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

The dollar amount of desired profit from the production and sale of the company’s product is: A. $175,000B. $67,200C. $73,500D. $96,000

92. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

The cost per unit for the production and sale of the company’s product is: A. $12.11B. $12.88C. $15D. $13.50

93. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

The markup percentage on total cost for the company’s product is: A. 21.0%B. 22.7%C. 15.8%D. 24.0%