Brislin Products has a new product going on the market next year.The following data are projections for production and sales: \[\begin{array} { l l } \text { Variable costs } & \$ 250,000 \\ \text { Fixed costs } & \$ 450,000 \\ \text { ROl } & 14 \% \\ \text { Investment } & \$ 2,000,000 \\ \text { Sales } & 200,000 \text { units } \end{array}\] - What is the markup percentage?

A) 112% B) 20% C) 62% D) 40% A) 112% B) 20% C) 62% D) 40%

The Dairy Division of Famous Foods, Inc.produces and sells milk to outside customers.The operation has the capacity to produce 200,000 gallons of milk a year.Last year's operating results were as follows: \[\begin{array} { l r } \text { Sales } ( 160,000 ) \text { gallons } & \$ 500,000 \\ \text { Variable costs } & 312,000 \\ \text { Contribution margin } & 188,000 \\ \text { Fixed costs } & 100,000 \\ \text { Net Income } & \$ 88,000 \end{array}\] - Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division.The minimum price that will increase the Dairy Division's profit is

A) $2.50 per gallon. B) $1.18 per gallon. C) $1.95 per gallon. D) $0.55 per gallon. A) $2.50 per gallon. B) $1.18 per gallon. C) $1.95 per gallon. D) $0.55 per gallon.

Red Grass Company produces high definition television sets.The following information is available for this product: \[\begin{array} { l r } \text { Fixed cost per unit } & \$ 250 \\ \text { Variable cost per unit } & 750 \\ \text { Total cost per unit } & 1,000 \\ \text { Desired ROl per unit } & 300 \end{array}\] - Red Grass Company's markup percentage would be

A) 30%. B) 40%. C) 60%. D) 120%. A) 30%. B) 40%. C) 60%. D) 120%.

Exam 8: Reporting and Analyzing Receivables

The following data is available for Wheels 'N Spokes Repair Shop for 2013: Repair technicians' wages \ 360,000 Fringe benefits 80,000 Overhead 60,000 Total \ 500,000 The desired profit margin is $40 per labor hour.The material loading charge is 40% of invoice cost.It is estimated that 5,000 labor hours will be worked in 2013. -In March 2013, Wheels 'N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240.The bill for this repair would be

(Multiple Choice)

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Question 81

In time-and-material pricing, the material charge is based on the cost of direct materials used and a material loading charge for related overhead costs.

(True/False)

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Question 82

Using the negotiated transfer pricing approach, a minimum transfer price is established by the selling division.

(True/False)

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Question 83

Under the negotiated transfer pricing approach, the maximum transfer price is established by the

(Multiple Choice)

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Question 84

All of the following are correct statements about the cost-plus pricing approach except that it

(Multiple Choice)

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Question 85

In a competitive environment, the company must set a target cost and a target selling price.

(True/False)

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Question 86

Brislin Products has a new product going on the market next year.The following data are projections for production and sales: Variable costs \ 250,000 Fixed costs \ 450,000 ROl 14\% Investment \ 2,000,000 Sales 200,000 units - What is the markup percentage?

(Multiple Choice)

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(34)

Question 87

The Dairy Division of Famous Foods, Inc.produces and sells milk to outside customers.The operation has the capacity to produce 200,000 gallons of milk a year.Last year's operating results were as follows: Sales (160,000) gallons \ 500,000 Variable costs 312,000 Contribution margin 188,000 Fixed costs 100,000 Net Income \ 88,000 - Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division.The minimum price that will increase the Dairy Division's profit is

(Multiple Choice)

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Question 88

The Can Division of Fruit Products Inc.manufactures and sells tin cans externally for $0.60 per can.Its unit variable costs and unit fixed costs are $0.24 and $0.08, respectively.The Packaging Division wants to purchase 50,000 cans at $0.32 a can.Selling internally will save $0.02 a can. -Assuming the Can Division is already operating at full capacity, what is the minimum transfer price it should accept?

(Multiple Choice)

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Question 89

Variable costs of units sold internally will always be

(Multiple Choice)

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Question 90

Lawrence Legal Services recently billed a customer $690.Labor hours were 6 and the cost of the materials used was $150.If the company's hourly labor rate was $75, what material loading charge was used?

(Multiple Choice)

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Question 91

Differences in tax rates between countries can complicate the determination of the appropriate transfer price.

(True/False)

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Question 92

In most cases, a company sets the price instead of it being set by the competitive market.

(True/False)

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Question 93

The first step for time-and-material pricing is to calculate the

(Multiple Choice)

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Question 94

The Wood Division of Fir Products, Inc.manufactures rubber moldings and sells them externally for $55.Its variable cost is $25 per unit, and its fixed cost per unit is $7.Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $32. -Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is

(Multiple Choice)

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Question 95

A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of $30.What was the amount of investment?

(Multiple Choice)

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Question 96

Red Grass Company produces high definition television sets.The following information is available for this product: Fixed cost per unit \ 250 Variable cost per unit 750 Total cost per unit 1,000 Desired ROl per unit 300 - Red Grass Company's markup percentage would be

(Multiple Choice)

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Question 97

The overall objective in the determination of a transfer price is to

(Multiple Choice)

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Question 98

Dudly Drafting Services uses a 45% 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 $40 of materials?

(Multiple Choice)

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Question 99

The Selling Division's unit sales price is $25 and its unit variable cost is $15.Its capacity is 10,000 units.Fixed costs per unit are $6.Current outside sales are 8,000 units. -What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division?

(Multiple Choice)

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Question 100

Showing 81 - 100 of 120

In time-and-material pricing, the material charge is based on the cost of direct materials used and a material loading charge for related overhead costs.

Using the negotiated transfer pricing approach, a minimum transfer price is established by the selling division.

Under the negotiated transfer pricing approach, the maximum transfer price is established by the

All of the following are correct statements about the cost-plus pricing approach except that it

In a competitive environment, the company must set a target cost and a target selling price.

Brislin Products has a new product going on the market next year.The following data are projections for production and sales: Variable costs \ 250,000 Fixed costs \ 450,000 ROl 14\% Investment \ 2,000,000 Sales 200,000 units - What is the markup percentage?

Variable costs of units sold internally will always be

Lawrence Legal Services recently billed a customer $690.Labor hours were 6 and the cost of the materials used was $150.If the company's hourly labor rate was $75, what material loading charge was used?

Differences in tax rates between countries can complicate the determination of the appropriate transfer price.

In most cases, a company sets the price instead of it being set by the competitive market.

The first step for time-and-material pricing is to calculate the

A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of $30.What was the amount of investment?

Red Grass Company produces high definition television sets.The following information is available for this product: Fixed cost per unit \ 250 Variable cost per unit 750 Total cost per unit 1,000 Desired ROl per unit 300 - Red Grass Company's markup percentage would be

The overall objective in the determination of a transfer price is to

Dudly Drafting Services uses a 45% 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 $40 of materials?

The Selling Division's unit sales price is $25 and its unit variable cost is $15.Its capacity is 10,000 units.Fixed costs per unit are $6.Current outside sales are 8,000 units. -What is the Selling Division's opportunity cost per unit from selling 2,000 units to the Purchasing Division?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

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