The following per unit information is available for a new product of Red Ribbon Company:

Desired ROI20

Fixed cost40

Variable cost60

Total cost100

Selling price120

What would be Red Ribbon Company's markup percentage?

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A company has two divisions: one making components and the other electrical goods. The component division sells a heating ring to the electrical goods division to make kettles but this division can buy a similar component from an outside supplier for 12. The costs of a heating ring made by the component division include a variable cost of 8 and an allocation of overhead costs of 5.

If there is spare capacity in the component division, what should the transfer price be?

Group of answer choices

Below 12

Above 8

Between 12 and 8

Above 12

Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for HK$30. The Food Division sells the product to customers for HK$70 per unit. The Food Division's variable cost per unit is HK$35 and its fixed cost per unit is HK$10.

If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?

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Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for HK$30. The Food Division sells the product to customers for HK$70 per unit. The Food Division's variable cost per unit is HK$35 and its fixed cost per unit is HK$10.

If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?

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Kwan Consulting provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant.

Consultants' wagesHK$90,000

Fringe benefitsHK$22,500

Related overheadHK$17,500

Material supply clerk's wagesHK$18,000

Fringe benefitsHK$4,000

Related overheadHK$20,000

Profit margin per hourHK$20

Profit margin on materials15%

Total estimated consulting hours5,000

Total estimated material costsHK$168,000

How much is the rate charged per hour of labor?

Group of answer choices

HK$42.50

HK$26.00

HK$41.50

HK$46.00

Kwan Consulting provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant.

Consultants' wagesHK$90,000

Fringe benefitsHK$22,500

Related overheadHK$17,500

Material supply clerk's wagesHK$18,000

Fringe benefitsHK$4,000

Related overheadHK$20,000

Profit margin per hourHK$20

Profit margin on materials15%

Total estimated consulting hours5,000

Total estimated material costsHK$168,000

How much is the material handling/loading percentage?

Group of answer choices

15%

25%

40%

55%

Kwan Consulting provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant.

Consultants' wagesHK$90,000

Fringe benefitsHK$22,500

Related overheadHK$17,500

Material supply clerk's wagesHK$18,000

Fringe benefitsHK$4,000

Related overheadHK$20,000

Profit margin per hourHK$20

Profit margin on materials15%

Total estimated consulting hours5,000

Total estimated material costsHK$168,000

A consulting job takes 20 hours of consulting time and $180 of materials. How much will be the client's bill.

Group of answer choices

HK$1,172

HK$772

HK$952

HK$1,100

Red Grass Company produces high definition television sets. The following information is available for this product:

Fixed cost per unit250

Variable cost per unit750

Total cost per unit1,000

Desired ROI per unit300

How much is the target selling price for this television?

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