A 87400 b 88200 c 96140 d 102630 241 244 cso 2c3a los

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a. $874.00. b. $882.00. c. $961.40. d. $1,026.30.
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241 244. CSO: 2C3a LOS: 2C3b Companies that manufacture made-to-order industrial equipment typically use which one of the following? a. Cost-based pricing. b. Market-based pricing. c. Material-based pricing. d. Price discrimination. 245. CSO: 2C3a LOS: 2C3b Which one of the following is not a characteristic of market-based costing? a. It has a customer-driven external focus. b. It is used by companies facing stiff competition. c. It is used by companies facing minimal competition. d. It starts with a target selling price and target profit. 246. CSO: 2C3a LOS: 2C3c Almelo Manpower Inc. provides contracted bookkeeping services. Almelo has annual fixed costs of $100,000 and variable costs of $6 per hour. This year the company budgeted 50,000 hours of bookkeeping services. Almelo prices its services at full cost and uses a cost-plus pricing approach. The company developed a billing price of $9 per hour. The company’s mark-up level would be a. 12.5%. b. 33.3%. c. 50.0%. d. 66.6%. 247. CSO: 2C3b LOS: 2C3j Fennel Products is using cost-based pricing to determine the selling price for its new product based on the following information. Annual volume 25,000 units Fixed costs $700,000 per year Variable costs $200 per unit Plant investment $3,000,000 Working capital $1,000,000 Effective tax rate 40% The target price that Fennell needs to set for the new product to achieve a 15% after-tax return on investment (ROI) would be a. $228. b. $238. c. $258. d. $268.
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242 248. CSO: 2C3e LOS: 2C3f A monopoly will maximize profits if it produces an output where marginal cost is a. less than marginal revenue. b. greater than marginal revenue. c. equal to marginal revenue. d. equal to price. 249. CSO: 2C3e LOS: 2C3f At the long-run profit maximizing equilibrium of a firm in a perfectly competitive market, all of the following are correct except that a. price equals marginal cost. b. price equals average total cost. c. economic profits are positive. d. marginal cost equals marginal revenue. Section D: Risk Management 250. CSO: 2D1b LOS: 2D1f A firm is constructing a risk analysis to quantify the exposure of its data center to various types of threats. Which one of the following situations would represent the highest annual loss exposure after adjustment for insurance proceeds? Frequency of Occurrence Loss Insurance (years) Amount (% coverage) a. 1 $ 15,000 85. b. 8 75,000 80. c. 20 200,000 80. d. 100 400,000 50. Section E: Investment Decisions 251. CSO: 2E1a LOS: 2E1a Capital investment projects include proposals for all of the following except a. the acquisition of government mandated pollution control equipment. b. the expansion of existing product offerings. c. additional research and development facilities. d. refinancing existing working capital agreements.
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243 252. CSO: 2E1a LOS: 2E1a Which one of the following items is least likely to directly impact an equipment replacement capital expenditure decision?
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