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postnew [5]
3 years ago
11

Landau Gears provides the following cost information related to its production of its primary product: Per Unit Variable manufac

turing cost $12 Fixed manufacturing cost 8 Variable selling and administrative expenses 2 Fixed selling and administrative expenses 3 Desired ROI per unit 7 What is the markup percentage assuming that Landau Gears uses absorption costing? a. 60% b. 35% c. 100% d. 28%
Business
1 answer:
galben [10]3 years ago
4 0

Answer:

The Mark Up % for Landau Gears (using absorption costing) = 28%

Explanation:

Landau Gears

Variable Manufacturing cost Per unit = $12

Fixed Manufacturing cost Per unit = $8

Variable Selling & Admin cost Per unit = $2

Variable Selling & Admin cost Per unit = $3

Desired ROI Per unit = $7

Calculate Mark-Up %

ROI = Sales minus Invested Fund (Cost of operations)

where ROI = $7/unit

$7 = Sales minus ($12 + $8 + $2 + $3)

$7 = Sales minus $25

Make Sales the subject of formula

Sales = $25 + $7 = $32

Mark Up = 7/25 x 100% = 28%

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A government budget is a document created by the government and/or another political institution that details proposed spending and tax revenue estimates for the upcoming fiscal year. The budget is typically presented to the legislature in parliamentary systems, and it frequently needs their approval.

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8 0
1 year ago
How do individuals contribute to the circular flow of economic activity?A) Businesses buy goods and services from individuals.B)
ZanzabumX [31]

Answer:

C

Explanation:

Individuals provide labor for factor markets and buy goods in product markets.

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6 0
3 years ago
What is a​ firm's gross​ profit? A. the difference between sales revenues and cash expenditures associated with those sales B. t
miv72 [106K]

Answer:

B. The difference between sales revenues and the costs associated with those sales

Explanation:

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7 0
3 years ago
Lindsey needs a car to get back and forth from her home in the city to her university, which are 4 miles apart. When shopping fo
Brilliant_brown [7]

Answer:

Impulse Buying

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5 0
3 years ago
The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production
Blizzard [7]

Answer:

$3,500

Explanation:

Under variable costing method, product costs are calculated on variable manufacturing  costs only.

Step 1 : Determine unit Product Cost

Product Cost = Variable Manufacturing Costs

                      =  $ 35

Step 2 : Determine the units in Inventory

Units in Inventory = Opening Stock + Production - Sales

                              = 0 +  7,210 - 7,110

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Step 3 : Determine Inventory value

Inventory value = Units x Cost per unit

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Conclusion :

the ending inventory of finished goods under variable costing would be: $3,500

3 0
2 years ago
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