Examlex

Solved

Silco Pty Ltd Manufactures Various Lines of Computer Equipment

question 34

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.If Silco uses cost-plus pricing based on absorption cost,determine the mark-up percentage the company must use. 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.If Silco uses cost-plus pricing based on absorption cost,determine the mark-up percentage the company must use.   A)  21.6% B)  15.7% C)  29.5% D)  None of the given answers


Definitions:

Entrepreneur

An individual who starts and runs a business venture, taking on financial risks in the hopes of profit.

Successful

Achieving desired visions and planned goals, often marked by performance or achievement.

High Self-efficacy

The belief in one's own ability to succeed in specific situations or accomplish a task, which can influence motivation and persistence.

Resourceful

Able to deal skillfully and promptly with new situations, difficulties, etc.

Related Questions