McEnroe Industries Budgeted the Following Costs for the Production of Its

question 112

Multiple Choice

McEnroe Industries budgeted the following costs for the production of its only product, tennis balls, for the next fiscal year: $$\begin{array} { l r } \text { Materials } & \$ 35,000 \\\text { Labor } & 25,000 \\\text { Overhead: } & \\\text { Variable } & 30,000 \\\text { Fixed } & 15,000 \\\text { Selling and administrative: } & \\\text { Variable } & 7,500 \\\text { Fixed } & \underline { 12,500 } \\\text { Total costs } & \$ 125,000\end{array}$$ McEnroe Industries has a target profit of $60,000.The average target markup for setting prices as a percentage of prime costs would be _____.

• A)38%
• B)61%
• C)208%
• D)63%

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Definitions:

Ego Identification

The process by which an individual forms an understanding of themselves through associations with certain groups, roles, ideals, etc.

Disengagement Theory

A theory suggesting that aging naturally leads individuals to withdraw from social relationships and society, facilitating smooth transfer of responsibilities to the younger generation.

Socioemotional Selectivity Theory

A theory suggesting that as people age, they prioritize relationships that are emotionally fulfilling.

Anxiety Disorders

A group of mental disorders characterized by significant feelings of anxiety and fear that interfere with daily activities, such as panic disorder, social anxiety disorder, and generalized anxiety disorder.