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

Synthesize information to determine the cash impact of transactions not directly related to cash flows from operating activities, such as investing and financing activities.

Understand the appropriate communication strategies with patients regarding laboratory tests.

Identify the types and characteristics of control samples in laboratory settings.

Recognize various laboratory equipment and their uses.

---

Definitions:

Labor Intensive

A process or industry that requires a large amount of labor to produce its goods or services, as opposed to being heavily automated.

Mechanized Work

Work processes that are performed using machinery and equipment to enhance efficiency and productivity.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total base units used by all products, applied throughout the entire manufacturing plant.

Overhead Allocation Base

A measure or factor used to distribute overhead costs to products or services, such as machine hours or labor costs.