Question :
46. Custom Shoes Co. has gathered the following information concerning : 1311801
46. Custom Shoes Co. has gathered the following information concerning one model of shoe:
Variable manufacturing costs$40,000
Variable selling and administrative costs$20,000
Fixed manufacturing costs$160,000
Fixed selling and administrative costs$120,000
Investment$1,700,000
ROI30%
Planned production and sales5,000 pairs
What is the target selling price per pair of shoes?
a.$142
b.$170
c.$114
d.$158
47. Custom Shoes Co. has gathered the following information concerning one model of shoe:
Variable manufacturing costs$40,000
Variable selling and administrative costs$20,000
Fixed manufacturing costs$160,000
Fixed selling and administrative costs$120,000
Investment$1,700,000
ROI30%
Planned production and sales5,000 pairs
What is the markup percentage?
a.150%
b.255%
c.850%
d.182%
48. Lock Inc. has collected the following data concerning one of its products:
Unit sales price$145
Total sales15,000 units
Unit cost$115
Total investment$1,800,000
The ROI percentage is
a.20%.
b.25%.
c.30%.
d.35%.
49. Lock Inc. has collected the following data concerning one of its products:
Unit sales price$145
Total sales15,000 units
Unit cost$115
Total investment$1,800,000
The markup percentage is
a.20.69%.
b.22.59%.
c.25%.
d.26.09%.
50. A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of $30. What was the amount of investment?
a.$144,000
b.$2,500,000
c.$456,000
d.$789,475
51. Brislin Products has a new product going on the market next year. The following data are projections for production and sales:
Variable costs$250,000
Fixed costs$450,000
ROI14%
Investment$2,000,000
Sales200,000 units
What is the target selling price per unit?
a.$4.90
b.$3.50
c.$2.65
d.$3.65
52. Brislin Products has a new product going on the market next year. The following data are projections for production and sales:
Variable costs$250,000
Fixed costs$450,000
ROI14%
Investment$2,000,000
Sales200,000 units
What is the markup percentage?
a.112%
b.20%
c.62%
d.40%
53. Brislin Products has a new product going on the market next year. The following data are projections for production and sales:
Variable costs$250,000
Fixed costs$450,000
ROI14%
Investment$2,000,000
Sales200,000 units
What would the markup percentage be if only 150,000 units were sold and Brislin still wanted to earn the desired ROI?
a.32.95%
b.53.33%
c.35.0%
d.44.00%
54. When using cost-plus pricing, which amount per unit does not change when the expected volume differs from the budgeted volume?
a.Variable cost
b.Fixed cost
c.Desired ROI
d.Target selling price
55. Why does the unit selling price increase when expected volume is lower than budgeted volume?
a.Variable costs and fixed costs have to be spread over fewer units.
b.Fixed costs and desired ROI have to be spread over fewer units.
c.Variable costs and desired ROI have to be spread over fewer units.
d.Fixed costs only have to be spread over fewer units.
