Fantasy Transport Company has average invested capital of $800,000 and a target return on investment of 15%. The total cost per unit is $20 based on a volume level of 25,000 units. Fantasy's markup percentage on total cost is:
A. 9.375%.
B. 47.5%.
C. 24.0%.
D. 62.5%.
E. None of the answers is correct.
Answer: C
You might also like to view...
Select the correct statement regarding fixed costs.
A. Total fixed cost remains constant when volume changes. B. Fixed cost per unit is not fixed. C. There is a contradiction between the term "fixed cost per unit" and the behavior pattern implied by the term. D. All of these are correct statements.
Time, place, and possession utility have no real value in terms of money.
Answer the following statement true (T) or false (F)
Marta purchased residential rental property for $600,000 on January 1, 1985. Total ACRS deductions for 1985 through the date of sale amounted to $600,000. If the straight-line method of depreciation had been used, depreciation would have been $600,000. The property is sold for $750,000 on January 1 of the current year. The amount and character of the gain is
A) $750,000 Sec. 1231 gain. B) $150,000 Sec. 1231 gain and $600,000 ordinary income. C) $750,000 ordinary gain due to Sec 1245. D) $750,000 ordinary gain due to Sec. 1250.
__________ conflict is designed to elicit different opinions without inciting people's personal feelings
a. dysfunctional b. negative c. programmed d. intragroup