1) TheBostonCompanymanufacturesofficeequipment.Theyarereadytointroduceanewlineofdesktopcopiers.Thefollowingdataconcernsthecopiers:

Variablemanufacturingcost $180

Appliedfixedmanufacturingcost $ 90

Variablesellingandadministrativecost $ 60

Allocatedfixedsellingandadministrativecost $ 75

Ifthecompanyusescost-pluspricingbasedonfullcost,whatpricemustthecompanychargewhenthemark-uppercentageis40percent?

Select one:

a) $567

b) $462

c) $600

d) $513

2) Which of the following represents the cost-based pricing formula?

Select one:

a) Price = cost + (mark-up % + cost)

b) Price = cost + mark-up %

c) Price = mark-up % cost

d) Price = cost + (mark-up % cost)