A company has a process that results in 36000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $241200 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?

-Process further, the company will be better off by $216000.

-Sell now, the company will be better off by $241200.

-Process further, the company will be better off by $25200.

-Sell now, the company will be better off by $25200.

In cost-plus pricing, the target selling price is computed as

-variable cost per unit + fixed manufacturing cost per unit + desired ROI per unit.

-fixed cost per unit + desired ROI per unit.

-total unit cost + desired ROI per unit.

-variable cost per unit + desired ROI per unit.

Sunland Company uses a 45% material loading charge and a labor rate of $15 per hour. How much will be charged on a job that requires 3.5 hours of work and $30 of materials?

-$66.00

-$82.50

-$99.75

-$96.00

The overall objective in the determination of a transfer price is to

-maximize the return to the whole company.

-maximize the return of the selling division.

-minimize the return of the selling division.

-minimize the cost to the purchasing division.