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Emmedics, Inc. is launching a new product that it estimates will sell for $30 per unit. Annual demand is estimated to be 70,000 units. Emmedics estimates that using its current manufacturing technology, it can manufacture the units for $23 per unit, but if it purchases a new machine, the units can be manufactured for $22 per unit. Emmedics has a target profit of 10% return on sales. Under target costing, what is the target cost for the new product? Select one: A. $22 o B. $23 O C. $27 OD. $20 Viva Company has two divisions: Opti Division and Lupi Division. The Opti Division manufactures a single product, presently operates at 95 per cent of full capacity (100 000 units) and can sell all 95 000 units produced to outside customers. This product is also a component used in a product made by the Lupi Division. Optis full cost of production is $23.50 per unit, including $5.50 of applied fixed overhead costs. The applied fixed overhead is calculated based upon production of 95 000 units. Optis management believes that production can be raised to 100 000 units without affecting cost behaviour. Opti's selling price per unit is $30 with a 10 per cent sales commission on outside sales. Lupi is presently negotiating the purchase of units from Opti. Lupi can purchase a comparable component outside for $29. What is the minimum acceptable transfer price for the first 5000 units from the viewpoint of Opti's management? Select one: A. $27.80 O B. $18.00 OC. $27.00 o D. $22.00 The following information is available for Marvin Ltd: Cost of debt before tax 10% Cost of equity 12% Market value of debt $ 4 000 000 Market value of equity 6 000 000 The company tax rate is 30 per cent. WACC is Select one: A. 7.8% O B. 11.2% OC. 9.5% O D. 10% Honda is a specialist in producing engines and operates in a number of areas including the production of motor vehicles, mowers, boats, and snowmobiles. This organisation's corporate level strategy would best be described as a: Select one: O A. Related diversified firm B. Reactor firm o C. All over the place firm D. Unrelated diversified firm Which of the following are ethical standards for management accountants? .- = = - Competence Objectivity Confidentiality Integrity Select one: O A. i, ii, iii and iv o B. i, iii and iv o C. i, ii and iv o D. ii, iii and iv