Question :
92.Magic Fun has total fixed costs of $4,000,000 and total : 1302812
92.Magic Fun has total fixed costs of $4,000,000 and total variable cost of $2,000,000 during a month when it sold 200,000 units. What price will Magic Fun charge if it uses cost-plus pricing and a markup of 20%?
A.$30.00
B.$24.00
C.$36.00
D.$48.00
93.Cain Manufacturing produces 40,000 clocks at a total cost of $908,000. Total fixed costs are $408,000. If Cain increases production by 20% and uses a 50% markup, how much will the selling price per unit be?
A.$49.35
B.$21.00
C.$31.50
D.$34.05
94.A manufacturing company produces and sells 50,000 units of a single product. Total product costs are $8 per unit. If total sales are $550,000, what markup percentage is the company using?
A.37.5%
B.72.7%
C.50.0%
D.137.5%
95.A manufacturing company produces and sells 40,000 buckets. At this level of activity, variable costs total $80,000 and fixed costs total $120,000. If each bucket is sold for $8, what markup percentage is the company using?
A.60%
B.160%
C.75%
D.133%
96.The chief engineer at Wilson Electronics has proposed the production of a digipad to be sold at a 30 percent markup on full cost. Management estimates that the fixed costs per year will be $150,000 and the variable cost of the digipad will be $28 per unit. If Wilson sells 30,000 digipads, what is the full cost of each unit?
A.$42.90
B.$33.00
C.$36.40
D.$9.90
97.The chief engineer at Wilson Electronics has proposed the production of a digipad to be sold at a 30 percent markup. Management estimates that the fixed costs per year will be $150,000 and the variable cost of the digipad will be $28 per unit. If Wilson sells 30,000 digipads, how much is the selling price of each digipad?
A.$42.90
B.$33.00
C.$36.40
D.$9.90
98.The target costing process for a new product
A.starts with the features that customers want and the price customers are willing to pay.
B.is applied after the product has been designed.
C.focuses on creating products that include all possible product features to broaden the company’s market share.
D.adds a markup percentage for profit once the price of the product has been determined.
99.Which of the following lists the steps in the target costing process in the proper order?
A.Analyze customer needs and wants, determine the desired profit, find the target cost, and design the product
B.Design the product, analyze customer needs and wants, determine the desired profit, and find the target cost
C.Analyze customer needs and wants, find the target cost, design the product, and determine the desired profit
D.Analyze customer needs and wants, determine the desired profit, design the product, and find the target cost
100.What is the basic premise of target costing?
A.Products should be designed to meet customer needs at a price customers are willing to pay that allows the company to make a reasonable profit.
B.Products should be designed at the least cost possible to enable the lowest price in the market.
C.Products should be designed based on features that competitors’ products include to enhance the company’s ability to compete more effectively.
D.The price with the highest profit should always be selected.
101.In which stage are most of the manufacturing costs for a product determined?
A.Design stage
B.Preproduction stage
C.During production
D.At the completion of production
