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Posted on Sep 14, 2024

Styles Styles Se Panel Pricing 8-11 Use the following information for questions 51-53. Boislin Products has a new product going on the market next year.

Styles Styles Se Panel Pricing 8-11 Use the following information for questions 51-53. Boislin Products has a new product going on the market next year. The following data are projections for production and sales: Variable costs $250,000 Fixed costs $450,000 ROI 14% Investment $2,000,000 Sales 200,000 units 51. What is the target selling price per unit? a. $4.90 b. $3.50 c. $2.65 d. $3.65 Ansa, LO: 2, Bloom: AP. Difficulty: Medium, Min 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving Decision Making, IMA: Business Economics 52. What is the markup percentage? a. 112% b. 20% C. 62% d. 40% Ans: d, LO, 2. Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving Decision Making, IMA: Business Economics 53. What would the markup percentage be if only 150,000 units were sold and Bdslin stil wanted to earn the desired ROI? a. 32.95% b. 53.33% c. 35.0% d. 44.00% And, LO: 2. Bloom: AP. Dimiculty Medium, Min 2, AACSB: Analytis, AICPA BB: Marketing Cent Focus, AICPA FN: Measurement AICPA PC Problem Solving Decision Making. IMA Business Economics 54. When using cost-plus pricing, which amount per unit does not change when the expected Yolyme differs from the budanted yolume? d. it can be used to determine a product's target cost. Ans: , LO: 2, Bloc , Difficulty: Easy, Min: 1 AACSB: Reflective Thinking, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC Project Management, IMA Business Economics 59. The following per unit information is available for a new product of Red Ribbon Company: Desired ROI $ 20 Fixed cost Variable cost 60 Total cost 100 Selling price 120 Red Ribbon Company's markup percentage would be a. 17% b. 20% C. 33%. d. 50%. Ans: b, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC. Problem Solving/Decision Making. IMA: Business Economics 60. Bryson Company has just developed a new product. The following data is available for this product: Desired ROI per unit $ 30 Fixed cost per unit Variable cost per unit Total cost per unit The target selling price for this product is a. $155. b. $125. c. $105. d. $80. Ans: a, LO: 2, Bloom: AP. Difficulty: Medium, Min: 2, AACSB: Analytio, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving/Decision Making, IMA: Business Economics 750 Use the following information for questions 63-64. Red Grass Company produces high definition television sets. The following information available for this product: Fixed cost per unit $250 y Variable cost per unit Total cost per unit 1,000 Desired ROI per unit 300 63. Red Grass Company's markup percentage would be a. 30%. b. 40%. C. 60%. d. 120%. Ans: a, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC: Problem Solving/Decision Making, IMA: Business Economics 64. The target selling price for this television is a. $550. b. $1,000 C. $1,050. d. $1,300. Ans: d, LO: 2, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Cilent Focus, AICPA FN: Measurement AICPAP Project Management, IMA: Business Economics - Focus, AICPA FN: Measurement, AICPA PC: Use the following information for questions 70-72. The following data is available for Wheels 'N Spokes Repair Shop for 2016: Repair technicians' wages $360,000 Fringe benefits 80,000 Overhead 60,000 Total $500.000 The desired profit margin is $40 per labor hour. The material loading charge is 40% of invoice cost. It is estimated that 5,000 labor hours will be worked in 2016. 70. Wheels 'N Spokes' labor charge per hour in 2016 would be a. $100. b. $112. C. $128. d. $140. Ans: d, LO:3, Bloom: AP. Riigile Medium Min: 2 AAGAR Analytin AICPA RR Martina Pricing 8 - 15 71. In January 2016, Wheels 'N Spokes repairs a bicycle that uses parts of $180. Its material loading charge on this repair would be a. $72. b. $108. C. $180. d. $252. Ans: a, LO: 3, Bloom: AP, Difficulty: Medium, Min: 2, AACSB: Analytic, AICPA BB: Marketing/Client Focus, AICPA FN: Measurement, AICPA PC Problem Solving/Decision Making, IMA: Cost Management 72. In March 2016, Wheels 'N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be a. $520. b. $560. c. $592. d. $616