2. The following data pertain to Quincey Enterprises: What price will the compan

Question

2.  

The following data pertain to Quincey Enterprises:

  
What price will the company charge if the firm uses cost-plus pricing based on total cost and a markup percentage of 50%?

Multiple Choice

$74.50.

$223.50.

$298.00.

$447.00.

None of these.

4.  

The Razooks Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:

What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 165%?

Multiple Choice

$158.79.

$432.30.

$420.79.

$694.30.

None of these.

  Variable manufacturing cost $ 71   Variable selling and administrative cost 21   Applied fixed manufacturing cost 41   Allocated fixed selling and administrative cost 16

Explanation / Answer

2) Total cost = All variable cost + all fixed cost = 71 + 21 +41 +16 = 149

Mark up price = 149 * 1.50 = 223.50

4) Total variable costs = (191+71) * (1+165%) = 694.30

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

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