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Current Attempt in Progress It costs Sheffield Company $18 of variable costs and $8 of fixed costs to produce its product that sells for $41. Pharoah Company, a foreign buyer, offers to purchase 3000 units at $23 each. If the special offer is accepted and produced with unused capacity, net income will: increase $7200. decrease $7200. increase $14400. increase $11400. Bramble Bunyon Lumber Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period Product Sales Value Additional Sales Value after at Split-off Variable Costs Further Processing $166600 $26000 $192600 Green lumber Rough lumber Sawdust 131000 29500 183400 111000 21300 140400 Which products should be processed further? Rough lumber and sawdust. All three products. Green lumber and sawdust. Green lumber and rough lumber. Current Attempt in Progress Marigold Manufacturing is introducing a new product with a unit selling price of $13.50. The product required an investment of $550000, and the company requires a 15% ROI. Projected sales are 110000 units. Compute the target cost per unit. $13.35 $14.25 $13.50 $12.75 Kaspar Corporation makes a commercial-grade cooking griddle. The following info Total Per Unit $17 $6 $15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $523,200 $4 $228,900 The company uses a 40% markup percentage on total cost. Compute the total cost per unit. Total cost per unit $ Compute the target selling price. Target selling price $ DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Month Units Month Units January 10,350 March 5,470 February 8,230 April 4,210 Each unit requires 4 pounds of raw materials costing $2 per pound. On December 31, 2019, the ending raw materials inventory was 8,280 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month's production requirements. Prepare a direct materials purchases budget by month for the first quarter. DEWITT INDUSTRIES Direct Materials Purchases Budget For the Quarter Ending March 31, 2020 February March Bramble Corp. has a new product going on the market next year. The following data are projections for production and sales: Variable costs Fixed costs ROI $150000 $450000 16% Investment $1800000 200000 units Sales What is the markup percentage? 64% 48% 192% 17%