MCQ QUESTION

A company is considering releasing a new product into the market. They do not believe in undercutting the market on prices. Additionally while their new product has some different features to those of the competitors they do believe customers are price sensitive. The company is well established and has a good track record regarding forecasting of costs and demand. With the above information in mind which ONE pricing strategy would be best advised? Select one: a. Cost plus pricing o b. Price skimming O c. Price penetration O d. Price discrimination Bellmarsh Ltd manufactures 1043 units of tiles per year. The cost data is as follows: Direct materials $5.61 per tile Direct labour $9.22 per tile Variable manufacturing overhead $2.12 per tile Fixed manufacturing overhead $3088 per year What is the variable cost of manufacturing one tile? Select one: O a. $17.79 O b. $19.91 O c. $14.83 O d. $16.95 A business produces iron weights for weight lifting. Each weight requires 10 kilos of iron. Information on the forecasted sales units of the weights is displayed below: Sales units of weights January 2501 February 2867 March 1585 Iron costs 8 per kilo. The weights are produced one month before sale. Iron is bought and paid for in the month of production. What is the figure to be included in February's cash budget for Iron purchases? Round answer at the end to nearest pound (). Select one: O a. 126800 O b. 20008 O c. 12680 O d. 200080 Rainbow Ltd manufactures a product that has the following costs per unit: Direct labour 9 Direct materials 13 Variable manufacturing overhead 18 The company has capacity to manufacture 1500 units per month, but at the moment manufactures only 1000 units per month. The fixed manufacturing overhead for manufacturing up to 1500 units per month is 18180. A special order from Shower plc comes in for 250 units of the product. What price must Rainbow Ltd charge Shower plc for the order if Rainbow Ltd wishes to make make an extra profit of 8025 for the coming month? Select one: O a. 18025 b. 11965 O c. 21661 O d. 22570