PLEASE ANSWER ALL QUESTIONS!

1.) When using the product cost concept of applying the cost-plus approach to product pricing, what is included in the markup?

a. total costs plus desired profit

b. desired profit

c. total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit

d. total selling and administrative expenses plus desired profit

9.) Match each of the definitions that follow with the term it defines:

Engineering change order	A document that initiates a product or process change
Total cost concept	Includes manufacturing costs plus selling and administrative expenses
Variable cost concept	Changing tooling when preparing for a new product
Normal selling price	Target selling price to be achieved in the long term
Setup	Variable manufacturing costs plus variable selling and administrative costs are included in cost per unit

13.) Ptarmigan Company produces two products. Product A has a contribution margin of $217.20 and requires 12 machine hours. Product B has a contribution margin of $129.50 and requires 7 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places.

Contribution margin per machine hour:

a.) Product A: $____

b.) Product B: $____

c.) Product ____ (A/B) is the most profitable.

14.) Match the definitions that follow with the term it defines:

Demand-based concept	Constraint
Competition-based concept	Combines market-based pricing with a cost-reduction emphasis
Product cost concept	Only includes the costs of manufacturing in product cost per unit
Target costing	Sets the price according to competitors
Production bottleneck	Sets the price according to demand

19.) Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $22.30 per pound and costs $15.25 per pound to produce. Product D would sell for $41.20 per pound and would require an additional cost of $8.20 per pound to produce.

What is the differential cost of producing Product D?

a. $4.92 per pound

b. $9.84 per pound

c. $6.56 per pound

d. $8.20 per pound

21.) Diamond Boot Factory normally sells their specialty boots for $30 a pair. An offer to buy 65 boots for $22 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $11 and special stitching will add another $1 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Enter the amount as a positive number.

a. Differential ____ (income/loss) per pair of boots from accepting the special order is $____.

24.) Match each of the definitions that follow with the term it defines:

Opportunity cost	Possible result of using an inappropriate overhead allocation method
Sunk cost	Revenue forgone from an alternative use of an asset
Theory of constraints	Strategy that focuses on reducing bottlenecks
Differential analysis	Not relevant to future decisions
Product cost distortion	Evaluation of how income will change based on an alternative course of action

25.) The Mallory Company produces and sells Product X at a total cost of $35 per unit, of which $28 is product cost and $7 is selling and administrative expenses. In addition, the total cost of $35 is made up of $24 variable cost and $11 fixed cost. The desired profit is $8 per unit. Determine the markup percentage on product cost. Round your answer to one decimal place.

a. ____ %