The Gvanochii, Inc. manufactures premium quality of buttons with the following estimated costs:

Materials $2.00

Labor 0.50

Overhead

Fixed 0.25

Variable 0.75

Selling

Fixed 0.35

Variable 0.15

Administrative

Fixed 0.20

Variable 0.15

1. If a 25% mark-up on full production cost is desired, how much is the full production cost? a. $5.23 b. $4.38 c. $3.50 d. $.88 e. $5.00
2. If a mark-up on full cost is desired, the selling price per unit would be: a. P 4.35 b. $6.00 c. $5.25 d. $5.00 e. $3.45
3. If budgeted sales is 100,000 units, total capital employed is 60,000 and the desired rate of return on investment is 12%, selling price would be: a. $ 4.43 b. $4.42 c. $4.40 d. $4.41 e. $4.31
4. If 95% of conversion costs is its mark-on, mark-on would be: a. $1.43 b. $1.50 c. $5.77 d. $1.24 e. None of the above
5. Considering the information in Question 3 the capital employed turnover rate is: a. 7.32 b. 7.38 c. 7.35 d. 7.33 e. 7.37