7. Adler Company is considering developing a new product. The company has gathered the following in: Given this information, the desired markup percentage and selling price are: (a) markup percentage 10%; selling price $55. (b) markup percentage 200%; selling price $75. (c) markup percentage 10%; selling price $50. (d) markup percentage 100%; selling price $55. 8. A company with three products classifies its costs as belonging to five functions: design, production, marketing, distribution, and customer services. For pricing purposes, all company costs are assigned to the three products. The direct costs of each of the five functions are traced directly to the three products. The indirect costs of each of the five business functions are collected into five separate cost pools and then assigned to the three products using appropriate allocation bases. The allocation base that will most likely be the best for allocating the indirect costs of the production function is A. Number of customer phone calls B. Number of shipments C. Machine hours D. Dollar sales volume 9. Activity-based costing has been found to be useful in each of the following service industries except a. banks. b. hospitals. c. telephone companies. d. ABC has been useful in any of these industries. 10. The desired ROI per unit is calculated by a. multiplying the ROI times the investment and dividing by the estimated volume. b. multiplying the unit selling price by the ROI. c. dividing the total cost by the estimated volume and multiplying by the ROI. d. dividing the ROI by the estimated volume and subtracting the result from the unit cost. 3 11. The salary paid to the maintenance supervisor in a manufacturing plant is an example of