Which of the following is a true statement?O The mark-up is designed to cover all non-product costs, such as labor, utilities, supplies, interest expense, taxes, and also to provide the desired profit.Everything else being the same, the multiple for the ingredient mark-up approach to pricing will be smaller than the multiple for the prime ingredient mark-up approach.In the ingredient mark-up approach to pricing, the multiple is determined by dividing 1 by the desired product cost percentage.O All of the above.Only a. and c. above.QUESTION 21The Hotel is located on Jeju Island, Korea, a popular honeymoon destination area. For two weeks every spring, thousands of newlyweds travel to the area for fun andrelaxation. Which of the following yield management tactics would make sense for pricing rooms during these two weeks?O Refuse reservations for one-night stays.O Sell all rooms at the same rates during these two weeks.Require a three-day minimum stay at the quoted rate for each distribution channel.All of the above.O Only a. and c. above.QUESTION 22The Inn is a 100-room inn that was built ten years ago for a total project cost of $7,500,000. The market value of the facility is now estimated at $10,000,000 and the General Manager estimates that thelevel of guest services is worth at least $2,000 per room per ycar. A close competitor of The Inn charges $80 per night per room. What is the estimated room rate using the $1 per $1,000 approach?O 559.$75.$78.$86.O $100.

Answer: only a and c above The markup method is commonly used in pricing restaurant food menus and…

Which of the following is a true statement? O The mark-up is designed to cover all non-product costs, such as labor, utilities, supplies, interest expense, taxes, and also to provide the desired profit. O Everything else being the same, the multiple for the ingredient mark-up approach to pricing will be smaller than the multiple for the prime ingredient mark-up approach. O In the ingredient mark-up approach to pricing, the multiple is determined by dividing 1 by the desired product cost percentage. O All of the above. O Only a. and c. above.

Which of the following is a true statement? O The mark-up is designed to cover all non-product costs, such as labor, utilities, supplies, interest expense, taxes, and also to provide the desired profit. O Everything else being the same, the multiple for the ingredient mark-up approach to pricing will be smaller than the multiple for the prime ingredient mark-up approach. O In the ingredient mark-up approach to pricing, the multiple is determined by dividing 1 by the desired product cost percentage. O All of the above. O Only a. and c. above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

If a company chooses a price to charge for its product by adding up all the expenses necessary to make the product and then adding in a profit, this is known as: a) Target Costing Ob) Skimming Pricing Oc) Cost-Based Pricing Od) Odd-Even Pricing Oe) Penetration Pricing
CLEAR MY CHOICE Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. All of the given answers are true. O c. Total revenues and total costs are linear in relation to output units. O d. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O e. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. NEXT PAC AGE ere to search
The equation for total costs (Y) is: Y = a+ bX In this equation, “a” represents: Net income Cost of goods sold Total fixed costs The level of activity (e.g., the number of units produced) Total variable costs Variable cost per unit of X Total revenue
Fill in the missing amounts in each of the eight case situations below. Each case Is Independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format Income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the following four case situations: Unit sold Sales Variable expenses Fixed expenses Operating income (loss) Contribution margin per unit Sales Variable expenses Fixed expenses $ Operating income (loss) Average contribution margin (percentage) Case #1 20,400 244,800 163,200 68,000 $ $ 136,000 $ 10 Case #2 $ Case #1 536,000 43,520 10.880 $ 8,800 20% 10 $ 69 Case #3 Case #2 13,600 b. Assume that more than one product is being sold in each of the following four case situations: (Enter "Contribution margin ratio" in percent. Round your final answers to the nearest whole dollar amount.) 436.000 283.400 109.000 95,200 16,320 13 $ S CA Case #4…
Which of the followings is not correct about cost-based pricing? Select one: a. Total fixed costs change as the production amount changes. b. Total costs are the sum of total fixed and variable costs. c. Total variable costs increase due to a rise in production level. d. Variable costs per unit tend to be constant with respect to number of units produced.
Fill in the missing amounts in each of the following eight case situations. Treat each case independently. (Hint: One way to find the missing amounts would be to prepare a contribution margin income statement for each case, enter the known data, and then compute the missing items.) a. Assume that only one product is being sold in each of the following four case situations: (Negatlve omounts should be Indicated by a mlnus sign. Enter your contributlon margln answers as per unlt dollor values. Enter your answers rounded to the nearest whole number.) Fixed Еxpenses Net Income (Loss) Variable Contribution Case Units Sold Sales Expenses Margin 14,000 196,000 $9 per unit 46.000 1 106,600 $16 per unit 40% 31,500 59,400 15 10,000 3. 9,900 282,000 $31 per unit 104,000 (8,000) 4 b. Assume that more than one product is being sold in each of the following four case situations: (Negative omounts should be Indicated by a mlnus sign.) Average Contribution Margin (percentage) Variable Fixed Net Income…
The decision of whether to process products beyond the splitoff process should be based on which of the following? Select one: a. Production cost analysis b. Revenue analysis c. Incremental operating income attainable beyond the splitoff point d. Relevant cost analysis e. Gross margin analysis
Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. Oc. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. All of the given answers are true. LEVIOUS PAGE FINISH ATTEMPT ... Finish Esc FnLock F1 F2 F3 F4 FB F9 F10 F11 @ 23 2$ % 1 3 4 6 8. Q W E IT Y S G Y J L. C NIM 24 Alt こ0 >
Which of the following statements about CVP analysis is false? O a. Operating income calculations in CVP analysis are based on contribution margin not gross margin. O b. Unit selling price, unit variable costs, and total fixed costs are known and remain constant. O c. Managers use (CVP) analysis to study the behavior of and relationship among the elements such as total revenues, total costs, and income O d. Total revenues and total costs are linear in relation to output units. O e. All of the given answers are true. OUS PAGE FINISH ATTEMPT ... F1 F2 F3 F4 F5 F6 F7 F8 F10 23 % & 2 3 4 7 8. V Q W T A F K 13 C V BYNI M 24 S
An analyst is constructing a simple model to determine the gross and net profit of a product, given its profit per unit, quantity sold, and the total costs assigned to the product. The calculation for gross profit is Profit per Unit times Quantity. The calculation for Net Profit is Gross Profit minus Total Costs. A B 1. 2 Profit per Unit 8 3 Quantity |10,100 4 Gross Profit 5 6 Total Costs 6,100 7 8 Net Profit With the values for Profit per Unit, Quantity, and Total Costs shown above, what should the model return for the following calculated cells? Cell Value Gross Profit Net Profit
Which of the following statements correctly complete the sentence:"Gross Margin equals":I. sales revenue less (minus) cost of goods sold.II. contribution margin less (minus) fixed costs.III. operating income plus all period costs.IV. sales revenue less (minus) cost of goods manufactured.
Which one of the following is not considered an assumption of cost-volume-profit analysis? a. Costs can be divided into variable and fixed components O b. Costs are nonlinear Fixed cost per unit is not constant О с. O d. Sales mix of products sold does not change e. Selling price per unit does not change with volume O O 0 O O