What are the mark-up percentage and the selling price

Assignment Help Accounting Basics
Reference no: EM132576689

S'well produces water bottles. Variable costs include raw materials and direct labour and variable selling expenses. Fixed costs include salaries for factory supervisor and the necessary equipment to produce the bottles. There are also fixed marketing and administrative costs. S'well owner Sarah Kauss has $280,000 invested in the business and desires an 6% return on her investment. S'well sells 5,000 water bottles per year across Canada.

Production costs

Variable cost $ 10 Per Unit

Fixed $ 60,000 Per Year

Selling, Marketing and Administrative Costs

Variable $ 5 Per Unit

Fixed $ 15,000 Per Year

Question 1: Using the variable cost-based pricing, what are the mark-up percentage and the selling price?

Select one:

Option a. Mark-up percentage 122.40% Selling Price $33.36

Option b. Mark-up percentage 112.25% Selling Price $40.79

Option c. Mark-up percentage 34.26% Selling Price $36.85

Option d. Mark-up percentage 65.23% Selling Price $42.56

Reference no: EM132576689

Questions Cloud

Describe the benefits to the use of cryptocurrency : While there are many benefits to the use of cryptocurrency, there is also much skepticism from the general public. Much of this concern centers around.
What do you know about the market : A stock market analyst is able to identify mis-priced stocks by comparing the average price for the last 10 days
What is McDognals forecasted Cost of Goods Sold : Sales are forecasted to grow 10% and the gross margin is forecasted to remain at 30%. What is McDognals' forecasted Cost of Goods Sold for next year
Explain the activities that occur when initiating project : Explain the activities that occur when initiating a project. As a Project Manager for Kingston-Bryce Limited you have been assigned to create a business case.
What are the mark-up percentage and the selling price : Using the variable cost-based pricing, what are the mark-up percentage and the selling price? Variable costs include raw materials and direct labour
What generic strategy is the company using and why : What generic strategy is the company using and why? Provide support for your choice of generic strategy from an external scholarly/peer reviewed source.
Determine the single most paramount consideration : Read and reflect upon the "Top Ten - Considerations for Evolving into the Role of a Consultant" in Chapter 5 of Roberts' text. Propose three (3) actions.
What amount should she deposit today to allow : Sophie set up a savings fund for her son's education so that she would be able to withdraw $1,775 at the beginning of every month
Compute the amount of phantom profit that would result : Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is great lake effective tax rate

Great Lakes statutory tax rate for 2010 is 35%. What is Great Lake's effective tax rate

  Explain briefly the terms profitability

Explain briefly the terms profitability, liquidity and solvency. Based on the ratios calculated in comment on the profitability, liquidity of the two firms.

  Prepare an incremental analysis schedule to demonstrate

Prepare an incremental analysis schedule to demonstrate if RSW should accept Rayco's offer

  What is the cost of the ending inventory on july

Using the perpetual system, costing by the first-in, first-out (FIFO) method, what is the cost of the ending inventory on July 31

  Prepare journal entries to record the December transactions

Prepare journal entries to record the December transactions. General ledger account numbers and descriptions are not needed

  Calculate interest rates and insurance information

ACC 308 Intermediate Accounting Assignment - Final Project Scenario, Southern New Hampshire University, USA. Calculate interest rates and insurance information

  Show the effect of the above transaction on a statements

Show the effect of the above transaction on a statements model like the one shown below:

  A worker at the state unemployment office

A worker at the State Unemployment Office is responsible for processing a company's forms when it opens for business. The worker can process an average of four forms per week.

  Post the above transactions to t-accounts

William Waterspout set up a retailing business selling gardening tools, called ‘Toolgarden' on 1 November 2016.

  How often should these be reviewed

Management should re-evaluate these controls periodically. How often should these be reviewed

  Dividend on common stock

Arntson Corporation's net income last year was $7,975,000. The dividend on common stock was $8.20 per share and the dividend on preferred stock was $3.50 per share. The market price of common stock at the end of the year was $59.10 per share.

  Differences between revenue and capital expenditures

Explaining the differences between revenue expenditures and capital expenditures during a useful life and identifying any similarities

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd