The Following Data Pertain to Lomax Enterprises What Price Will the Company Charge If the Firm Uses

question 81

Multiple Choice

The following data pertain to Lomax Enterprises: $$\begin{array} { l r } \text { Variable manufacturing cost } & \$ 70 \\\text { Variable selling and administrative cost } & 20 \\\text { Applied fixed manufacturing cost } & 40 \\\text { Allocated fixed selling and administrative cost } & 15\end{array}$$ What price will the company charge if the firm uses cost-plus pricing based on absorption manufacturing cost and a markup percentage of 110%?

• A) $84.
• B) $147.
• C) $210.
• D) $231.
• E) None of the other answers are correct.

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Definitions:

Proportion

A part, share, or number considered in comparative relation to a whole, typically expressed as a fraction or percentage.

Hypothesis Test

A methodology in statistics that utilizes data from a subset to assess a conjecture about a population attribute.

Publishing Contract

An agreement between an author and publisher dictating the terms under which a work will be published, including rights, distribution, and royalties.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive" result in statistical hypothesis testing.