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Unformatted text preview: Class Problems Chapter 15 Day 2 1. The following data pertain to Lopez Enterprises: What price will the company charge if the firm uses cost-plus pricing based on absorption manufacturing cost and a markup percentage of 110%? A. $84. B. $147. C. $210. D. $231. E. Some other amount. 2. Dexter, Inc., which manufactures various lines of computer equipment, is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows: The average amount of capital invested in the laptop product line is $900,000 and Dexter's target return on investment is 18%. If Dexter uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be: A. 15.72%. B. 21.64%. C. 29.56%. D. 58.93%. E. some other amount. 3 . Montana produces bicycles in a highly competitive market. During the past year, the company has added a 30% markup on the $250 manufacturing cost for one of its most popular models. A new competitor manufactures a similar model, has established a $300 popular models....
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This note was uploaded on 03/05/2010 for the course ACC 12331 taught by Professor Fawcett during the Spring '10 term at University of Texas at Austin.
- Spring '10