Reference no: EM132469969
Question 1 - A manager is setting the price of a product. He is considering either using a 12% sales margin or 15% cost mark-up method. What would the selling price be, if his cost of sales is £45?
A. £50.40 margin or £51.75 mark-up
B. £51.14 margin or £52.94 mark-up
C. £50.40 margin or 52.94 mark-up
D. £51.14 margin or £51.75 mark-up
Question 2 - A camera will be priced at £300. What will its target cost of sales need to be if the retailer takes a 40% sales margin and the manufacturer, a 30% sales margin?
A. £90.00
B. £36.00
C. £126.00
D. £164.83
Question 3 - Larry Cable plans to introduce a new product and is using the target cost approach. Projected sales revenue is €810,000 (€4.05 per unit) and target costs are €730,000. What is the desired profit per unit in EURO CENTS?
Question 4 - A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of HK$30. What was the amount of investment?
A. HK$144,000
B. HK$2,500,000
C. HK$456,000
D. HK$789,475
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: Projected sales revenue is €810,000 (€4.05 per unit) and target costs are €730,000. What is the desired profit per unit in EURO CENTS
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