46-

The following information related to a price-taker Company:

Production volume	4,000 unit
Market price	$24.00 per unit
Target Profit	$14,000
Variable cost per unit	$12.00 per unit
Total fixed cost	$50,000

With the current cost structure, the company cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be reduced, how much will be the target variable cost per unit to achieve the target profit?

Select one:

$4 per unit

$6 per unit

$8 per unit

$10 per unit

$14 per unit

$12 per unit

44-

Identify each cost below as Variable, Fixed, or Mixed relative to units sold:

Units Sold	50 Units	100	150	200
Utilities expense per unit	$10	5	3.333	2.5
Total insurance expenses	2,000	2,200	2,300	2,400
Total Labor cost	3,000	6,000	9,000	12,000

Select one:

Utilities: Fixed/ Insurance: Fixed / Labor: Variable.

Utilities: Mixed / Insurance: Variable / Labor: Fixed.

Insurance: Fixed /Utilities: Variable / Labor: Mixed.

Insurance: Mixed /Utilities: Fixed /Labor: Variable.

Labor: Variable /Utilities: Fixed/ Insurance: Variable

Utilities: Mixed/Insurance: Fixed /Labor: Variable.

43-

Green Load Company is a price-setter and uses cost plus pricing. Times has just done an analysis of their revenues, costs, and average total assets, and has calculated its target cost plus price. Refer to the following information:

Total fixed cost	$ 500,000
variable cost per unit	$ 3 per unit
average total assets	$ 10,000,000
Production volume	250,000 units

Assume target ROI equals 10%, calculate the cost-plus price which will achieve the companys desired profit:

Select one:

$21.6

$21.16

$9

$10.6

$5.6

$10.16