Question :
111. Target costing arrived at by A. taking the selling price and subtracting : 1239624
111. 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%.
112. Paint Company manufactures Paint X and Paint Y and can sell all it can make of either. Based on the following data, assuming the number of hours is a constraint, 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 is profitable.
D. X and Y are equally profitable.
113. 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 5 hours to process, Tales take 7 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
114. 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 5 hours to process, Tales take 7 hours, and Wales take 1 hour.
What is the contribution margin per machine hour for Bales?
A. $5
B. $7
C. $35
D. $28
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 5 hours to process, Tales take 7 hours, and Wales take 1 hour.
What is the contribution margin per machine hour for Tales?
A. $4
B. $7
C. $28
D. $35
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 5 hours to process, Tales take 7 hours, and Wales take 1 hour.
What is the contribution per machine hour for Wales?
A. $35
B. $28
C. $17
D. $7
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 5 hours to process, Tales take 7 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. $49,000
B. $70,000
C. $56,000
D. $34,000
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 5 hours to process, Tales take 7 hours, and Wales take 1 hour.
Assume 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. $35,000
B. $7,000
C. $4,000
D. $28,000
119. Flyer Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost per unit for the product is $44 per unit.
What is the target cost of the company’s product?
A. $44
B. $42
C. $43
D. $40
120. Flyer Company sells a product in a competitive marketplace. Market analysis indicates that their product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost per unit for the product is $44 per unit.
What is the desired profit per unit?
A. $6
B. $8
C. $5
D. $4