At what amount would scandia be selling sweaters

Assignment Help Accounting Basics

Reference no: EM131761843

Question: 1. Scandia Knitting Co. makes sweaters. In any one month, they can produce 25,000 sweaters which they have no problem selling. Their total variable costs per sweater are $36, total fixed costs of $100,000 and a markup percentage of 30%. Using the cost-plus approach, at what amount would Scandia be selling its sweaters?

a. $40.00

b. $46.80

c. $52.00

d. $56.00

e. $96.00

f. $52.00

2. Which of the following can be used to compare capital investment proposals of different size investments when doing a net present value analysis?

a. Profitability Index

b. Present Value Annuity Factor

c. Payback Period

d. Price-level Index

Reference no: EM131761843

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