The predicted 2017 costs for Beta Motors are as follows:

Manufacturing Costs

Selling & Administrative Costs

Variable	$200,000		Variable	$600,000
Fixed	440,000		Fixed	300,000

Average total assets for 2017 are predicted to be $7,000,000.

If the company desires a 10 percent rate of return on total assets, the markup percentage on total manufacturing costs for unassigned costs would be:

	A.	190.0 percent
	B.	192.5 percent
	C.	180.0 percent
	D.	250.0 percent

Foresight Company manufactures binoculars. The actual costs for 2016 and 2017 were as follows:

	2016		2017
Direct materials:

	Plastic case	$ 4.00		$ 3.80
	Lens set	17.00		17.20

Direct labor	32.00	(1.6 hours)	30.00	(1.5 hours)
Indirect manufacturing costs:

	Variable	8.00		7.10
	Fixed	2.00	(50,000 units)	1.60	(60,000 units)

Beginning in 2017, Foresight implemented a continuous improvement program that required a first-year cost reduction target of a 5 percent reduction of the 2016 base. Foresight's continuous improvement target for lens sets in 2017 was:

	A.	$16.15
	B.	$17.20
	C.	$16.00
	D.	$15.75