Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. Fixed factory overhead cost $38,500 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.60 Variable direct labor cost
per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit 4.50 The markup percentage on total cost for the company's product is:
A) 21.0%
B) 22.7%
C) 15.8%
D) 24.0%
B
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A lean business model aims to eliminate waste while satisfying the customer and providing a positive return to the company.
Answer the following statement true (T) or false (F)
Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles
A) optional feature B) two-part C) by-product D) product line E) captive-product
Annie Company purchased a computer for $5,000. During 2018 and 2019, the company recorded total depreciation of $4,000 on the computer. On January 1, 2020, the company exchanges the computer for a new one, paying $4,000 cash. The market value of the new computer is $6,000. Prepare the journal entry to record this transaction. Assume the exchange has commercial substance. Omit explanation.
What will be an ideal response?
Scenario A. Everyday Fashions Corp. is a clothing manufacturer. It has marketing, production, and finance departments, with a manager who heads each of the departments. Beatrice, the CEO, distributes the various organizational tasks to each manager by assigning authority and responsibility. Each manager has ten subordinates who are required to report to him or her. Each department works on its set of tasks in the organization. Beatrice is the top manager, followed by the department heads, and lastly the supervisors. All the managers are accountable to Beatrice alone.As CEO of Everyday Fashions Corp., Beatrice distributes work and assigns responsibility to the various department managers through the process known as
A. concentration. B. standardization. C. delegation. D. unity of command. E. span of control.