Davis Company has $20 per unit in variable costs and $800,000 per year in fixed costs. Demand is estimated to be 400,000 units per year. What is the desired price per unit if a markup of 30% on total cost is used to determine the price? $37.40 $34.00 $28.60 None of the answer choices is correct. $26.00 Question 6 Exhibit 7-9 Doughnuts Company uses flour to produce two joint products, Premium and Deluxe. When processed, each pound of flour yields 8 units of Premium and 12 units of Deluxe. Premium doughnuts sell for $1.00 per unit and Deluxe sell for $2.00 per unit. The total cost to process a 10-pound batch of flour is $12.00. Refer to Exhibit 7-9. If the physical quantities method is used to allocate the $12 in joint costs, how much will be allocated to Premium doughnuts? $4.80 $10.00 $6.00 None of the answer choices is correct. $7.20 Exhibit 7-4 The following segmented annual income statement is for Paper Products, Inc. Product Lines Plain Lined Color Total Sales revenue Variable costs $25,000 $100,000 $125,000 $250,000 15.000 50,000 85,000 150.000 Contribution margin $10,000 $50,000 $ 40,000 $100,000 Direct fixed costs 4,000 6,000 9,000 19,000 Allocated fixed costs Profit (loss) 45,000 ? $ ? S ? S Refer to Exhibit 7-4. If allocated fixed costs are based on sales revenue for each product line as a proportion of total sales revenue, what is the profit or (loss) for Plain? ($16,500) None of the answer choices is correct. $1,500 $6,000 O($9,000) All of the following are steps of target costing except: None of the answer choices is correct. Oderiving the target cost by subtracting the desired profit. O engineering the product to achieve the target cost. maximizing the contribution margin per unit of constrained resource. designing a product that provides the features and price demanded by customers