Question
Wesley Company makes bowling balls and uses the total cost method in setting product prices. Its costs for producing 10,000 bowling balls follow. The company
Wesley Company makes bowling balls and uses the total cost method in setting product prices. Its costs for producing 10,000 bowling balls follow. The company targets a 12.5% markup on total cost. The dollar markup per unit is: Variable Costs per Unit Fixed Costs (total) Direct materials $ 50.00 Overhead $ 235,000 Direct labor 12.50 Selling, general, and administrative 215,000 Overhead 10.00 Selling, general, and administrative 2.50 Question 17 Select one: a. $9.38. b. $5.63. c. $16.88. d. $13.75. e. $15.00.
Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 723,000 units of Basic, 484,000 units of Classic, and 124,000 units of Deluxe. Bricktan has limited production capacity of 996,000 machine hours. Machine hours per unit are as follows: Basic, 1 hour; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the most profitable sales mix for Bricktan Incorporated? Question 38 Select one: a. 72,300 Basic, 484,000 Classic and 265,600 Deluxe. b. 166,000 Basic, 124,000 Classic and 265,600 Deluxe. c. 360,000 Basic, 265,600 Classic and 124,000 Deluxe. d. 620,000 Basic, 0 Classic and 124,000 Deluxe. e. 81,000 Basic, 484,000 Classic and 124,000 Deluxe.
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