90. Papillon Co. has determined the following per unit amounts:Direct materials
ID: 2428250 • Letter: 9
Question
90. Papillon Co. has determined the following per unit amounts:Direct materials $20 Fixed selling and administrative $40Direct labor 24 Variable overhead 16
Desired ROI 22 Variable selling and administrative 10
Fixed overhead 30
The markup percentage using the variable-cost approach is
A) 80%.
B) 102%.
C) 131%.
D) 90%.
91. Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $120. The Food Division sells the product to customers for $210 per unit. The Food Division's variable cost per unit is $105 and its fixed cost per unit is $30.
Reference: Ref 8-15
If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?
A) $30
B) $105
C) $135
D) $210
92. Brislin Products has a new product going on the market next year. The following data are projections for production and sales:Variable costs $250,000
Fixed costs $450,000
ROI 15%
Investment $1,400,000
Sales 200,000 units
Reference: Ref 8-3
What is the markup percentage?
A) 84%
B) 15%
C) 40%
D) 30%
93. If the required direct materials purchases are 18,000 pounds, the direct materials required for production is three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds?
A) 45,000
B) 9,000
C) 27,000
D) 18,000
94. On January 1, Patel Company has a beginning cash balance of $21,000. During the year, the company expects cash disbursements of $170,000 and cash receipts of $145,000. If Patel requires an ending cash balance of $20,000, the company must borrow
A) $16,000.
B) $20,000.
C) $24,000.
D) $46,000.
Explanation / Answer
90. A) 80%91. C) $135
92. A) 84% (percentage on variable cost)
93. C) 27,000
94. C) $24,000 Thank you...
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