38. 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 Reference: Ref 8-7 What was the material loading charge? A) 20% B) 25% C) 35% D) 40% 39. 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 The target cost per bottle is A) $0.24. B) $0.40. C) $0.16. D) $0.60. 40. 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 What is the desired ROI per pair of shoes? A) $51.00 B) $126.00 C) $76.50 D) $127.50