Silco Pty Ltd Manufactures Various Lines of Computer Equipment

question 36

Multiple Choice

Silco Pty Ltd manufactures various lines of computer equipment. They are planning to introduce a line of laptop computers in January 2008. Current plans call for the production and sale of 1000 computers with estimated production costs as follows.
The average amount of capital invested in the laptop computer line is $900 000 and Silco's target return on investment for the line is 18 per cent. What price must Silco charge if the company uses cost-plus pricing based on total variable cost?

• A) $1930
• B) $712
• C) $1192
• D) $1030

Distinguish between unusual items, discontinued operations, and changes in accounting principles, and their impact on financial statements and performance analysis.

Comprehend the role and requirements of the Sarbanes-Oxley Act concerning internal controls and auditor's reports.

Understand the importance of comparing financial data across different periods and with other companies for comprehensive performance analysis.

Recognize the importance and limitations of earnings per share (EPS) as an indicator of company performance.

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Definitions:

Problem Solving

The process of identifying a problem, developing potential solutions, and implementing a solution.

Competitive Conflict

A situation where businesses or entities vie against each other for the same objective, leading to conflict due to their competing interests or goals.

Coercive

describes an approach or action intended to compel or force someone to follow orders or obey through pressure or threats.

Cooperative

A cooperative is an organization owned and operated by its members for their mutual benefit, often focusing on economic, social, and cultural needs and aspirations.