MUST BE ABLE TO ANSWER ALL QUESTIONS. IF NOT, PLEASE SKIP. THANKS IN ADVANCE!!!

1) The Heating Division of Kobe International produces a heating element that it sells to its customers for $44 per unit. Its variable cost per unit is $27, and its fixed cost per unit is $5. Top management of Kobe International would like the Heating Division to transfer 15,000 heating units to another division within the company at a price of $27. The Heating Division is operating at full capacity. What is the minimum transfer price that the Heating Division should accept?

MINIMUM TRANSFER PRICE $________

2) Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $30, direct labor $28, variable manufacturing overhead $21, fixed manufacturing overhead $38, variable selling and administrative expenses $18, and fixed selling and administrative expenses $30. Its desired ROI per unit is $31. Compute the markup percentage using absorption-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.)

MARKUP PERCENTAGE _______%

__________________________________________________________________________________________________

3) Presented below are data relating to labor for Verde Appliance Repair Shop.

The desired profit margin per hour is $15.32. The material loading charge is 60% of invoice cost. Verde estimates that 5,800 labor hours will be worked next year. If Verde repairs a dishwasher that takes 1.2 hours to repair and uses parts of $89.29, compute the bill for the job. (Round answer to 2 decimal places, e.g. 10.50.)

TOTAL COST %_________

__________________________________________________________________________________________________

4) Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $39, direct labor $22, variable manufacturing overhead $17, fixed manufacturing overhead $40, variable selling and administrative expenses $15, and fixed selling and administrative expenses $29. Its desired ROI per unit is $30. Compute the markup percentage using variable-cost pricing. (Round answer to 2 decimal places, e.g. 10.50%.)

MARKUP PERCENTAGE _______%

Repair-technicians' wages Fringe benefits Overhead $135,720 55,506 86,188