answer the following questions using the information below timothy company has inves 4309375

Answer the following questions using the information below:

Timothy Company has invested $1,000,000 in a plant to make vending machines. The target operating income desired from the plant is $150,000 annually. The company plans annual sales of 1,500 vending machines at a selling price of $1,000 each.

11) What is the target rate of return on investment for Timothy Company?

A) 15.0%

B) 17.6%

C) 10.0%

D) 11.1%

12) What is the markup percentage as a percentage of cost for Timothy Company?

A) 15.0%

B) 17.6%

C) 10.0%

D) 11.1%

13) What is the cost base of each vending machine for Timothy Company?

A) $720

B) $900

C) $850

D) $890

Answer the following questions using the information below:

Thornton Company has invested $2,000,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $360,000 annually. The company plans annual sales of 7,000 juicer machines at a selling price of $400 each.

14) What is the target rate of return on investment for Thornton Company?

A) 22.0%

B) 18.0%

C) 14.8%

D) 12.9%

15) What is the markup percentage as a percentage of cost for Thornton Company?

A) 22.0%

B) 18.0%

C) 14.8%

D) 12.9%

16) What is the cost base of each juicer machine for Thornton Company?

A) $349

B) $324

C) $338

D) $304

Answer the following questions using the information below:

Oscar Corporation budgeted the following costs for the production of its one and only product for the next fiscal year:

Direct materials$1,125,000

Direct labor780,000

Manufacturing overhead

Variable840,000

Fixed645,000

Selling and administrative

Variable360,000

Fixed480,000

Total costs$4,230,000

Oscar has an annual target operating income of $900,000.

17) The markup percentage for setting prices as a percentage of total manufacturing costs is:

A) 51%

B) 125%

C) 185%

D) 245%

18) The markup percentage for setting prices as a percentage of variable manufacturing costs is:

A) 54%

B) 87%

C) 169%

D) 122%

19) The markup percentage for setting prices as a percentage of the variable cost of the product is:

A) 328%

B) 36%

C) 228%

D) 65%

20) The markup percentage for setting prices as a percentage of the full cost of the product is:

A) 328%

B) 36%

C) 228%

D) 21