Quiz 01_Solution - 6A:130 Fall 2007 Quiz 1_Solution QUIZ 1...

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6A:130 – Fall 2007 Quiz 1_Solution QUIZ 1 Quiz 1 is a continuation of Class Exercise 2 . Class exercise 2 is repeated below with the related answers for questions 1 through 6. Answer questions 7 and 8 (each worth 5 points). To receive credit you must show your work . No partial credit will be given . Quiz is due at beginning of class; Section 1 – Thursday 9/6; Section 2 – Wednesday 9/5. Yuli Inc. is a manufacturer of Gidgets. Gidgets are highly modified sixth generation Widgets, with an extremely high customer “got to have” following. The marketing train is as follows: manufacturer transfers to wholesaler who transfers to the retailer. The retail selling price of a Gidget is $1.00. Retail profit margins (expressed as a percentage of sales) on Gidgets is 23%, while wholesalers have a 10% markup (expressed as a percentage of cost). Yuli’s variable manufacturing costs for Gidgets are $0.10 per unit and fixed manufacturing costs are $800,000. Yuli’s other costs for Gidgets include: advertising – $500,000; product manager’s salary –
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This note was uploaded on 04/07/2008 for the course ACCT 130 taught by Professor Hartman during the Fall '07 term at University of Iowa.

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Quiz 01_Solution - 6A:130 Fall 2007 Quiz 1_Solution QUIZ 1...

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