Question
QUESTION 1 Victor's Detailing customers would be willing to pay $57 per detail. The company requires an 80% markup on each job. The average job
QUESTION 1
Victor's Detailing customers would be willing to pay $57 per detail. The company requires an 80% markup on each job. The average job would cost $30. Victor's Detailing uses markup pricing to set the price on each job. What is the price Victor should quote a new customer?
| a. | $240 | |
| b. | $24 | |
| c. | $54 | |
| d. | $84 | |
| e. | $30 |
QUESTION 2
Information about three joint products follows:
| X | Y | Z | |
| Anticipated production | 12,000 lbs. | 8,000 lbs. | 7,000 lbs. |
| Selling price/lb. at split-off | $16 | $26 | $48 |
| Additional processing costs/lb. after split-off | |||
| (all variable) | $8 | $20 | $20 |
| Selling price/lb. after further processing | $20 | $40 | $70 |
The cost of the joint process is $140,000. Which of the joint products should be processed further?
| a. | X. | |
| b. | Y. | |
| c. | Z. | |
| d. | Both X and Y. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditors Guide To IT Auditing
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
