ROE, Opportunity Costing, BE Point & Variable Cost
Not what you're looking for?
The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows: Direct materials $60; Direct labor $10; Variable support costs $18; Fixed manufacturing support costs $32; Sales commissions (2% of sales) $4; Administrative salaries $16; Total Costs $140.Total variable costs associated with product ICT101 are:
Answer Choices
a. $18
b. $22
c. $88
d. $92
You calculate a firm's return on sales (ROS) to be 11.0%. Its asset turnover (AT) ratio is 2.0x and the equity multiplier (EM) is 3.0x. The current ratio is 2.5x and the debt-to-asset ratio is 50%. Using the data, it is possible to conclude that the firm's ROE is:
Answer Choices
a. 11.0%
b. 33.0%
c. 66.0%
d. 27.5%
e. None of the choices are correct
Bertram Enterprises offers to make Part V12 for $55 per unit for ASBM Company. ASBM has relevant costs of $65 per unit to manufacture Part V12. If there is excess capacity at ASBM, the opportunity cost (in terms only of the data given in this problem) to ASBM of buying Part V12 from the supplier:
Answer Choices
a. Is zero
b. Is $10,000
c. Is $70,000
d. Cannot be determined using the above information
If the sales price per unit is $200, the total fixed costs are $200,000, and total variable costs at the 1,000 level of production amount to $100,000, then the break-even volume in dollar sales is:
Answer Choices
a. 1,000 units
b. 2,000 units
c. 3,000 units
d. Cannot be determined from the information provided
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer what is the total variable costs associated with product ICT101.
Solution Preview
The Bowley Company manufactures several different products. Unit costs associated with product ICT101 are as follows: Direct materials $60; Direct labor $10; Variable support costs $18; Fixed manufacturing support costs $32; Sales commissions (2% of sales) $4; Administrative salaries $16; Total Costs $140.Total variable costs associated with product ICT101 are:
Answer Choices
a. $18
b. $22
c. $88
d. $92
Answer: D
60+10+18+4 = 92
You ...
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking