Reference no: EM132914510

Problem - Marian Sweets, Inc. manufactures candy products with the following estimated costs:

Materials P2.00

Labor .50

Overhead

Fixed .25

Variable .75

Selling

Fixed .35

Variable .15

Administrative

Fixed .20

Variable .15

1. If a mark-up on full cost is desired, the selling price per unit would be:

a. P 4.35

b. P 6.00

c. P 5.25

d. P 5.00

e. P 3.45

2. If a 25% mark-up on full production cost is desired, how much is the full production cost?

a. P 5.23

b. P 4.38

c. P 3.50

d. P .88

e. P 5.00

3. If 95% of conversion costs is its mark-on, mark-on would be:

a. P 1.43

b. P 1.50

c. P 5.77

d. P 1.24

e. None of the above

4. If budgeted sales is 100,000 units, total capital employed is 60,000 and the desired rate of return on investment is 12%, selling price would be:

a. P 4.43

b. P 4.42

c. P 4.40

d. P 4.41

e. P 4.31

20. J the information in Question 4 the capital employed turnover rate is:

a. 7.32

b. 7.38

c. 7.35

d. 7.33

e. 7.37