Q1When products are similar, the use of a plantwide allocation system will yield fairly accurate cost estimates.

Question1 options: a) True b) False

Q2-Bay Fitness & Spa has moved to a prime location in downtown Toronto and is in the process of determining its membership fees for next year. The companys owners are expected to earn a 12% return on their investment which amount to $1.5 million. The company expects to incur an average variable cost of $8 per customer and a fixed cost of $120,000. Around 8,500 members are expected next year. Using a cost-plus approach to pricing, the fees to be charged by the company for a single membership equal to ........... (round your answer to nearest dollar)

options: a) $37 b) $43 c) $39 d) $41