TB MC Qu. 15-77 Delmar Enterprises produces bicycles In a... Delmar Enterprises produces bicycles in a highly competitive market. During the past year, the company has added a 30% markup on the $430 manufacturing cost for one of its most popular models. A new competitor manufactures a similar model. has established a $480 selling price. and is seriously eroding Delmar's market share. Management now desires to use a target-costing approach to remain competitive and is willing to accept a 20% return on sales. If target costing is used, which of the following choices correctly denotes (1) the price that Delmar will charge and (2) company's target cost? Selling Price Target Cost A. $486 $384 B. $480 $430 C. $559 $384 D. $559 $430 E. Some other combination of selling price and target cost. Multiple Choice O Choice A O Choice B O Choice C O Choice D O Choice ETB MC Qu. 17-66 Kingston Specialty Corporation manufactures... Kingston Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $95,000 in the production of 36,000 gallons of P and 76,000 gallons of Q. Kingston can sell P and Q at split-off for $2.80 per gallon and $4.20 per gallon, respectively. Alternatively. both products can be processed beyond the split-off point, as follows: Separable processing costs $27,000 $47 ,000 Sales price (per gallon) if processed beyond split-off $ 5 $ 6 The joint cost allocated to P under the relative-sales-value method would be: (Do not round Intermedlate calculations.) Multiple Choice O $22,800. O $27.287. O $14.122. O $73,200. O None of the answers Is correct