33: The price which maximizes revenues is the price that should be selected. A)

Question

33: The price which maximizes revenues is the price that should be selected.
A) True
B) False

34: A manufacturing company produces and sells 20,000 units of a single product. Total production costs are $14/unit. If the total sales are $560,000 what mark up percentage is the company using?
A) 100%
B) 10%
C) 200%
D) 40%

35: A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?
A) $75.00
B) $62.50
C) There is not enough information in the problem to answer
D) $67.50

36: Which of the following are relevant in deciding whether to accept or reject a special order?
A. The impact the order will have on existing business.
B. The price that will be charged on the special order.
C. The incremental cost of filling the special order.
D. All of the above.

Explanation / Answer

33) True.. 34)Option "a" is the correct answer. 100% = [sales - cost ] / cost = [560000- 20000*14 ] / 20000*14 = 100% 35)Option "D" is the correct answer. = Varaible cost = 20*120000 units fxed cost = 30 [(Sale - cost )/ cost ] = 50% [(120000*x - 5400000) / 5400000] = 50% =120000*x - 5400000=5400000*50% =120000*x = 2700000+5400000 x means sale price = 8100000 /120000 = $67.5 36)Option " C" is the correct answer..

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.