1. Lonely Guy Repair Service recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered: Total bill $400

Labor profit margin $10

Materials profit margin 20%

Total labor charges $260

Cost of materials used $100

Total hourly cost $22.50

2. What was the material loading charge?

A) 20%

B) 25%

C) 35%

D) 40%

3. Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected: Annual sales 50,000 bottles

Projected selling and administrative costs $8,000

Desired profit $80,000

4. The target cost per bottle is

A) $0.24.

B) $0.40.

C) $0.16.

D) $0.60.

5. Custom Shoes Co. has gathered the following information concerning one model of shoe: Variable manufacturing costs $30,000

Variable selling and administrative costs $15,000

Fixed manufacturing costs $120,000

Fixed selling and administrative costs $90,000

Investment $1,275,000

ROI 30%

Planned production and sales 5,000 pairs

6. What is the desired ROI per pair of shoes?

A) $51.00

B) $126.00

C) $76.50

D) $127.50