Question: The following per unit information is available for a new product of Red Ribbon Company: Desired ROI20 Fixed cost40 Variable cost60 Total cost100 Selling price120
The following per unit information is available for a new product of Red Ribbon Company:
Desired ROI20
Fixed cost40
Variable cost60
Total cost100
Selling price120
What would be Red Ribbon Company's markup percentage?
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A company has two divisions: one making components and the other electrical goods. The component division sells a heating ring to the electrical goods division to make kettles but this division can buy a similar component from an outside supplier for 12. The costs of a heating ring made by the component division include a variable cost of 8 and an allocation of overhead costs of 5.
If there is spare capacity in the component division, what should the transfer price be?
Group of answer choices
Below 12
Above 8
Between 12 and 8
Above 12
Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for HK$30. The Food Division sells the product to customers for HK$70 per unit. The Food Division's variable cost per unit is HK$35 and its fixed cost per unit is HK$10.
If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept?
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Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for HK$30. The Food Division sells the product to customers for HK$70 per unit. The Food Division's variable cost per unit is HK$35 and its fixed cost per unit is HK$10.
If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?
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Kwan Consulting provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant.
Consultants' wagesHK$90,000
Fringe benefitsHK$22,500
Related overheadHK$17,500
Material supply clerk's wagesHK$18,000
Fringe benefitsHK$4,000
Related overheadHK$20,000
Profit margin per hourHK$20
Profit margin on materials15%
Total estimated consulting hours5,000
Total estimated material costsHK$168,000
How much is the rate charged per hour of labor?
Group of answer choices
HK$42.50
HK$26.00
HK$41.50
HK$46.00
Kwan Consulting provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant.
Consultants' wagesHK$90,000
Fringe benefitsHK$22,500
Related overheadHK$17,500
Material supply clerk's wagesHK$18,000
Fringe benefitsHK$4,000
Related overheadHK$20,000
Profit margin per hourHK$20
Profit margin on materials15%
Total estimated consulting hours5,000
Total estimated material costsHK$168,000
How much is the material handling/loading percentage?
Group of answer choices
15%
25%
40%
55%
Kwan Consulting provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant.
Consultants' wagesHK$90,000
Fringe benefitsHK$22,500
Related overheadHK$17,500
Material supply clerk's wagesHK$18,000
Fringe benefitsHK$4,000
Related overheadHK$20,000
Profit margin per hourHK$20
Profit margin on materials15%
Total estimated consulting hours5,000
Total estimated material costsHK$168,000
A consulting job takes 20 hours of consulting time and $180 of materials. How much will be the client's bill.
Group of answer choices
HK$1,172
HK$772
HK$952
HK$1,100
Red Grass Company produces high definition television sets. The following information is available for this product:
Fixed cost per unit250
Variable cost per unit750
Total cost per unit1,000
Desired ROI per unit300
How much is the target selling price for this television?
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