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11. Mighty Safe Fire Alarm is currently buying 50,000 motherboard from MotherBoard, Inc. at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $32 per unit, Direct labor $10 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $75,000. Which option should be selected and why? a. Buy - $75,000 more in profits b. Make - $275,000 increase in profits c. Buy - $275,000 more in profits d. Make - $350,000 increase in profits Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $82,000 45,000 5.50 7.65 2.25 .90 12. The dollar amount of desired profit from the production and sale of the company's product is: a. $105,840 b. $225,000 c. $96,000 d. $220,500 13. The cost per unit for the production of the company's product is: a. $13.15 b. $17.22 $15.40 с. d. $15.75 14. The markup percentage on product cost for the company's product is: a. 23.4% b. 10.98% c. 26.1% d. 18% 15. The unit selling price for the company's product is: a. $19.35 b. $15.75 c. $22.05 d. $21.26

11. Mighty Safe Fire Alarm is currently buying 50,000 motherboard from MotherBoard, Inc. at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $32 per unit, Direct labor $10 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $75,000. Which option should be selected and why? a. Buy - $75,000 more in profits b. Make - $275,000 increase in profits c. Buy - $275,000 more in profits d. Make - $350,000 increase in profits Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $82,000 45,000 5.50 7.65 2.25 .90 12. The dollar amount of desired profit from the production and sale of the company's product is: a. $105,840 b. $225,000 c. $96,000 d. $220,500 13. The cost per unit for the production of the company's product is: a. $13.15 b. $17.22 $15.40 с. d. $15.75 14. The markup percentage on product cost for the company's product is: a. 23.4% b. 10.98% c. 26.1% d. 18% 15. The unit selling price for the company's product is: a. $19.35 b. $15.75 c. $22.05 d. $21.26

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11. Mighty Safe Fire Alarm is currently buying 50,000 motherboard from MotherBoard, Inc. at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $32 per unit, Direct labor $10 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $75,000. Which option should be selected and why? a. Buy - $75,000 more in profits b. Make - $275,000 increase in profits c. Buy - $275,000 more in profits d. Make - $350,000 increase in profits Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $82,000 45,000 5.50 7.65 2.25 .90 12. The dollar amount of desired profit from the production and sale of the company's product is: a. $105,840 b. $225,000 c. $96,000 d. $220,500 13. The cost per unit for the production of the company's product is: a. $13.15 b. $17.22 $15.40 с. d. $15.75 14. The markup percentage on product cost for the company's product is: a. 23.4% b. 10.98% c. 26.1% d. 18% 15. The unit selling price for the company's product is: a. $19.35 b. $15.75 c. $22.05 d. $21.26
Transcribed Image Text:11. Mighty Safe Fire Alarm is currently buying 50,000 motherboard from MotherBoard, Inc. at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $32 per unit, Direct labor $10 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $75,000. Which option should be selected and why? a. Buy - $75,000 more in profits b. Make - $275,000 increase in profits c. Buy - $275,000 more in profits d. Make - $350,000 increase in profits Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $82,000 45,000 5.50 7.65 2.25 .90 12. The dollar amount of desired profit from the production and sale of the company's product is: a. $105,840 b. $225,000 c. $96,000 d. $220,500 13. The cost per unit for the production of the company's product is: a. $13.15 b. $17.22 $15.40 с. d. $15.75 14. The markup percentage on product cost for the company's product is: a. 23.4% b. 10.98% c. 26.1% d. 18% 15. The unit selling price for the company's product is: a. $19.35 b. $15.75 c. $22.05 d. $21.26
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