Silco Pty Ltd Manufactures Various Lines of Computer Equipment

question 35

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

Understand the purpose and process of preparing an adjusted trial balance.

Identify and classify different types of accounts based on business transactions.

Recognize accounts that appear on an adjusted trial balance and understand why some may not appear on an unadjusted trial balance.

Comprehend the importance and method of performing vertical analysis on financial statements.

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Definitions:

Cost-Cutting Initiatives

Measures implemented by an organization to reduce expenses and improve financial efficiency.

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specified time period, indicating the company's size and competitiveness in the market.

Diversifying

The strategy of expanding or varying products, services, or markets to reduce risk and increase potential for growth.

Reduction-In-Force (RIF)

A company strategy involving the decrease of its workforce due to budget cuts, restructuring, or other economic reasons, often leading to layoffs.