Thrilling Industries Budgeted the Following Costs for the Production of Its

question 144

Multiple Choice

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

• A) 158%
• B) 38%
• C) 63%
• D) 61%

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Definitions:

Informal Communication Channel

Unofficial paths of message exchange not defined by organizational structure, relying on social networks and personal relationships among members.

High-context Cultures

Cultures in which communication relies heavily on the context and non-verbal cues rather than just the words used, necessitating a deeper understanding of interpersonal relations and norms.

Nonverbal Cues

Communication signals other than words, such as gestures, facial expressions, and body language, which convey messages.

E-mail

A method of exchanging digital messages over the Internet, using specific addresses to send and receive communications electronically.