Question :
101. Dotterel Corporation uses the variable cost concept of product pricing. : 1239623
101. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.
Fixed factory overhead cost
$105,000
Fixed selling and administrative costs
35,000
Variable direct materials cost per unit
4.34
Variable direct labor cost per unit
5.18
Variable factory overhead cost per unit
.98
Variable selling and administrative cost per unit
.70
The dollar amount of desired profit from the production and sale of the company’s product is: A. $89,600B. $39,200C. $70,000D. $84,000
102. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.
Fixed factory overhead cost
$105,000
Fixed selling and administrative costs
35,000
Variable direct materials cost per unit
4.34
Variable direct labor cost per unit
5.18
Variable factory overhead cost per unit
.98
Variable selling and administrative cost per unit
.70
The variable cost per unit for the production and sale of the company’s product is: A. $14.00B. $12.60C. $ 9.80D. $11.20
103. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.
Fixed factory overhead cost
$105,000
Fixed selling and administrative costs
35,000
Variable direct materials cost per unit
4.34
Variable direct labor cost per unit
5.18
Variable factory overhead cost per unit
.98
Variable selling and administrative cost per unit
.70
The markup percentage for the sale of the company’s product is: A. 14%B. 5.6%C. 45.71%D. 11.2%
104. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.
Fixed factory overhead cost
$105,000
Fixed selling and administrative costs
35,000
Variable direct materials cost per unit
4.34
Variable direct labor cost per unit
5.18
Variable factory overhead cost per unit
.98
Variable selling and administrative cost per unit
.70
The unit selling price for the company’s product is: A. $16.32B. $13.44C. $12.10D. $13.72
105. What pricing concept considers the price that other providers charge for the same product? A. Demand-based conceptB. Total cost conceptC. Cost-plus conceptD. Competition-based concept
106. What pricing concept is used if all costs are considered and a fair mark-up is added to determine the selling price? A. Total cost concept B. Demand-based conceptC. Variable cost concept D. Fixed cost concept
107. Which equation better describes Target Costing? A. Selling Price – Desired Profit = Target CostsB. Selling Price + Profit = Target CostsC. Target Variable Costs + Contribution Margin = Selling PriceD. Selling Price = Profit – Target Variable Costs
108. 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. 46.5%C. 70%D. 110%
109. 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. 46.5%
110. 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 total cost. A. 100%B. 110%C. 80%D. 46.5%
