When will the elimination of a product line have no effect on the company's overall profits? When the avoidable fixed cost equals the product line's contribution margin When the unavoidable fixed cost equals the product lines contribution margin When there is no fixed cost incurred by the product line. When the product line contribution margin is negative. ape-pa Swifty Corporation plans to introduce a new product and is using the target cost approach Projected sales revenue is $803000 ($4.05 per unit) and target costs are $627750. What is the desired profit per unit? a. $0.88 b. $2.03 c. $3.17 d. None of the above Marigold Corp. is contemplating the production and sale ofa new widget. Projected sales are 5288000 (or 72000 units) and the desired profit is $31680. What is the target unit cost? a. $4.00 1:. $3.56 c. $4.44 d. $4.40 Sheffield Corp. has gathered the following information for one model of its hiking boots: Variable manufacturing cost $38000, Variable selling and administrative cost $19000, fixed manufacturing cost $160000, fixed selling and administrative cost $120000, investment 51300000, ROI 30%, Planned production and sales 10000 pairs. What is the desired ROI per pair of boots? e. $34 f. $64 g. $39 h. S112 Sunland Company has gathered the following information for one model of its hiking boots: Variable manufacturing cost $50000, Variable selling and administrative cost $40000, fixed manufacturing cost $150000, fixed selling and administrative cost $120000, investment 51800000, ROI 45%, Planned production and sales 5000 pairs. What is the markup percentage? i. 225% j. 405% k. 900% I. 145% The following data is available for Bonita Repair Shop for 2022. The desired profit margin is $30 per labor hour. The material loading charge is 40% of the invoice cost. It is estimated that 5000 labor hours will be worked in 2022. The Bonita labor charge per hour in 2022 would be: Repair technicians wages $430000 Employee benets 70000 Overhead 70000 Total $570000 $114 $116 $130 $144 "$39.33 The following data is available for Sunland Repair Shop for 2022. The desired profit margin is $45 per labor hour. The material loading charge is 40% of the invoice cost. It is estimated that 5000 labor hours will be worked in 2022. In January 2022, Sunland repairs a bicycle that uses parts of 5180. Its material loading charge on this repair would be: Repair technicians\" wages $380000 Employee benets 70000 Overhead 60000 Total $510000 q. $72.00 r. $108.00 5. $147.00 t. $264.00 Marigold Corp. uses a 50% material loading charge and a labor rate of $20 per hour. How much will be charged on a job that requires 3.5 hours of work and $55 of materials? U. 5153 v. $126 w. $98 x. $175 Bonita Industries has the following budgeted cost for the next year. The labor rate to be used next year assuming 7500 hours of repair time and a profit margin of $25 per labor hour is TimeChargg Material Charge_s Shop employees' wages and benets $130000 5 Parts manager's salary and benets - 45000 Ofce employee's salary and benets 35000 25000 Other overhead 15000 55000 Invoice cost of parts and materials . 420000 Total budgeted costs $180000 $545000 y. $55 2. $42 aa. $44 bb. $49 Coronado Industries manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycles companies and internally to its Production Division. It has been decided that the Engine Division will sell 26000 units to the Production Division at $1050 a unit. The Engine Division, currently operating at fall capacity, has a unit selling price of $2950 and unit variable costs and unit fixed costs of $1050 and $550, respectively. The Production Division is currently paying $2800 per unit to an outside supplier. Of this amount, $90 per unit can be saved on internal sales from reduced selling expenses. What is the minimum transfer price that the Engine Division should accept? cc. $2860 dd. $2950 ee. S2800 ff. $1900