1.Custom Shoes Co. has gathered the following information concerning one model of shoes: Variable manufacturing costs 40,000 Variable selling and administrative costs 20,000 Fixed manufacturing costs 160,000 Fixed selling and administrative costs 120,000 Investment 1,700,000 ROI 30% Planned production and sales 5,000 pairs What is the markup percentage?
A 150%
B 255%
C 850%
D 182%
2. Lock Inc. has collected the following data concerning one of its products Unit sales price 145 Total sales 15,000 units Unit cost 115 Total investment 1,800,000 The markup percentage is
a. 22.69%
b. 22.59%
c. 25%
d. 26.09%
3. The following per unit information is available for a new product of Red Ribbon Company: Desired ROI 20 Fixed cost 40 Variable cost 60 Total cost 100 Selling price 120 Red Ribbon Company's markup percentage would be
a. 17%
b. 20%
c. 33%
d. 50%
4. Off-line Co. has 9,000 units in beginning finished goods. The sales budget shows expected sales to be 36,000 units. If the production budget shows that 42,000 units are required for production, what was the desired ending finished goods?
a. 3,000
b. 9,000
c. 15,000
d. 27,000
5. Lion Industries required production for June is 132,000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 300,000 and 330,000 pounds, respectively. How many pounds of direct material Z must be purchased?
a. 378,000
b. 396,000
c. 408,000
d. 426,000