39 40 41 Q5: Cuff budgets sales of its truck tires at $235 per tire and estimates that 10,000 tires 42 can be sold during the coming year. Variable costs per tire are $60 and Cuff desires 43 a profit of $34 per tire. The target cost per tire is: 44 A) $60 45 B) $201 46 C) $175 47 D) $235 48 49 50 Q6: A company must price its product to cover its costs and earn a reasonable profit in 51 A) all cases 52 B) its early years 53 C) the long run 54 D ) the short run 55 56 57 Q7: Adler Company is considering developing a new product. The company has 58 gathered the following information on this product: 59 Expected total unit cost: $25 60 Estimated investment for new product: $500,000 61 Desired ROI: 10% 62 Expected number of units to be produced and sold: 1,000 63 The desired markup percentage (Total Cost Approach) and selling price are: (2 Marks) 64 A) markup percentage 100%; selling price $55. 65 B) markup percentage 10%; selling price $55. 66 C) markup percentage 200%; selling price $75. 67 D) markup percentage 10%; selling price $50. 68 Formula Sheet MCQ Segment Evaluation - 7 Marks Cash Budget - 16 Marks + Calculation Mode: Automatic Sheet Number Workbook Statistics f1 f2 f3 f4 15 esc Z