Exam 8: Pricing

Use the following information for questions Papillon Co. has determined the following per unit amounts: Direct materials \ 30 Fixed selling and administrative \ 60 Direct labor 36 Variable overhead 24 Desired ROI 33 Variable selling and administrative 15 Fixed overhead 45 -The markup percentage using the variable-cost approach is

Under the variable-cost approach, the cost base includes all of the following except

Using the negotiated transfer pricing approach, a minimum transfer price is established by the selling division.

The transfer price approach that conceptually should work the best is the

Factors that can affect pricing decisions include all of the following except

Use the following information for questions Papillon Co. has determined the following per unit amounts: Direct materials \ 30 Fixed selling and administrative \ 60 Direct labor 36 Variable overhead 24 Desired ROI 33 Variable selling and administrative 15 Fixed overhead 45 -The cost base using the variable-cost approach is

In March 2019, Wheels 'N Spokes repairs a bicycle that takes two hours to repair and uses parts of $240. The bill for this repair would be

In which of the following situations would a company not set the prices of its products?

All of the following are correct statements about the cost-based transfer price approach except that it

In cost-plus pricing, the target selling price is computed as

Use the following information for questions . Jaycee Auto Repair has the following budgeted costs for the next year: Time Charges Material Charges Shop employees' wages and benefits \ 120,000 \ Parts manager's salary and benefits - 45,000 Office employee's salary and benefits 30,000 15,000 Other overhead 15,000 40,000 Invoice cost of parts and materials - 400,000 Total budgeted costs \1 65,000 \5 00,000 -Jaycee estimates that the repairs to a Cadillac Escalade damaged in an accident will take 45 hours of labor and $3,500 in parts and materials. The total cost of the repairs is

The desired ROI per unit is calculated by

The most common method used to establish transfer prices is

If a cost-based transfer price is used, the transfer price must be based on variable cost.

All of the following are correct statements about transfers between divisions located in countries with different tax rates except that

In time-and-material pricing, the charge for a particular job is the sum of the labor charge and the

The markup percentage in the absorption-cost approach is computed by dividing the sum of the desired ROI per unit and

In time-and-material pricing, a material loading charge covers all of the following except

Use the following information for questions Management of the Catering Company would like the Food Division to transfer 10,000 cans of its final product to the Restaurant Division for $30. The Food Division sells the product to customers for $70 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $10. -If the Food Division has 10,000 units available capacity, what is the minimum transfer price the Food Division should accept?

Use the following information for questions The Wood Division of Fir Products, Inc. manufactures rubber moldings and sells them externally for $55. Its variable cost is $25 per unit, and its fixed cost per unit is $7. Fir's president wants the Wood Division to transfer 5,000 units to another company division at a price of $32. -Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is