Description of this paper

UMUC MGT640 homework 11

Description

solution


Question

Question;Question 1 (1 point) Question 1 Unsaved;Tory Company sells a single product. Troy estimates demand;and costs at various activity levels as follows;Units Sold Price Total Variable Costs Fixed Costs;120,000$48 $3,000,000 $1,000,000;150,500$45 $3,540,000 $1,000,000;160,000$40 $4,000,000 $1,000,000;180,000$35 $4,500,000 $1,000,000;200,000$30 $5,000,000 $1,000,000;How much profit will Troy have if a price of $45 is charged?;Your Answer;Question 1 options;Answer;Save;Question 2 (1 point) Question 2 Unsaved;The Falling Snow Company is considering production of a;lighted world globe that the company would price at a markup of 0.30 above full;cost. Management estimates that the variable cost of the globe will be $64 per;unit and fixed costs per year will be $240,000.;Assuming sales of 1,200 units, what is the full cost of a;globe with a 0.30 markup?;Your Answer;Question 2 options;Answer;Save;Question 3 (1 point) Question 3 Unsaved;The Falling Snow Company is considering production of a;lighted world globe that the company would price at a markup of 0.25 above full;cost. Management estimates that the variable cost of the globe will be $60 per;unit and fixed costs per year will be $240,000.;Assume that the quantity demanded at the price calculated in;part a is only 600 units. What is the full cost of the globe with a 0.25;markup?;Your Answer;Question 3 options;Answer;Save;Question 4 (1 point) Question 4 Unsaved;Wizard Corporation has analyzed their customer and order;handling data for the past year and has determined the following costs;Order processing cost per order;$7;Additional costs if order must be expedited (rushed);$10.00;Customer technical support calls (per call);$12;Relationship management costs (per customer per year);$1200;In addition to these costs, product costs amount to 75%;In the prior year, Wizard had the following experience with;one of its customers, Chester Company;Sales;$15,000;Number of orders;160;Percent of orders marked rush;.70;Calls to technical support;80;Required;Calculate the profitability of the Chester Company account.;Your Answer;Question 4 options;Answer;Save;Question 5 (1 point) Question 5 Unsaved;When a firm adds a predetermined percentage to the cost of;its product for pricing purposes, it is called;Question 5 options;incremental pricing;demand pricing;cost-plus pricing;cost plus demand pricing;Save;Question 6 (1 point) Question 6 Unsaved;PowerDrive, Inc. produces a hard disk drive that sells for;$175 per unit. The cost of producing 25,000 drives in the prior year was;Direct material $625,000;Direct labor 375,000;Variable overhead 125,000;Fixed overhead1,500,000;Total cost $2,625,000;At the start of the current year, the company received an;order for 3,600 drives from a computer company in China. Management of;PowerDrive has mixed feelings about the order. On the one hand they welcome the;order because they currently have excess capacity. Also, this is the company?s;first international order. On the other hand, the company in China is willing;to pay only $135 per unit.;What will be the effect on profit of accepting the order?;Your Answer;Question 6 options;Answer;Save;Question 7 (1 point) Question 7 Unsaved;Another name for menu-based pricing is;Question 7 options;Cost-plus pricing;Customer profitability pricing;Profit maximizing pricing;Activity-based pricing;Save;Question 8 (1 point) Question 8 Unsaved;A company has $35 per unit in variable costs and $1,200,000;per year in fixed costs. Demand is estimated to be 108,000 units annually. What;is the price if a markup of 40% on total cost is used to determine the price?;Your Answer;Question 8 options;Answer

 

Paper#49013 | Written in 18-Jul-2015

Price : $21
SiteLock