Question 47

46. Brislin Products has a new product going on the market next year. The following data are projections for production and sales: Variable costs Fixed costs ROI Investment Sales $250,000 $450,000 14% $2,000,000 200,000 units What is the markup percentage? A) 40% B) 112% C) 20% D) 62% 47. Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $960,000 for which the cost driver is machine setups. How much overhead is assigned to each product? Wind Fire A) $200,000 B) $240,000 C) $180,000 D) $320,000 $150,000 $450,000 $180,000 $540,000 $320,000 $460,000 $320,000 $320,000 Version I Page 12