Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 2,000 units of medical tablets are as follows:

Willis Products desires a profit equal to a 25% rate of return on invested assets of $116,560.

a. Determine the total manufacturing costs for the production and sale of 2,000 units.

Determine the cost amount per unit for the production and sale of 2,000 units.
$ per unit

b. Determine the product cost markup percentage per unit. Round your percentage answer to one decimal place.
%

c. Determine the selling price per unit. Use the rounded product cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar.
$ per unit

-In accounting for research and experimental expenditures incurred in 2018, all of the following alternatives are available with the exception of

A) expense R&E costs in the year paid or incurred.

B) expense R&E costs in the year in which a product or process becomes marketable.

C) defer and amortize R&E costs as a ratable deduction over a period of 60 months or more.

D) capitalize and write off R&E costs only when the research project is abandoned or is worthless.

-Kimiko Corporation purchases specialty software from a software development firm for use in its business as of January 1 of the current year at a cost of $120,000. No hardware was acquired. How much of the cost can Kimiko deduct this year?

A) $20,000

B) $40,000

C) $60,000

D) $90,000

-In calculating depletion of natural resources each period,

A) cost depletion must be used.

B) percentage depletion must be used.

C) the smaller of cost depletion or percentage depletion must be used.

D) the greater of cost depletion or percentage depletion must be used.

25. In accounting for research and experimental expenditures incurred in 2018, all of the following alternatives are available with the exception of

A) expense R&E costs in the year in which a product or process becomes marketable.

B) expense R&E costs in the year paid or incurred.

C) defer and amortize R&E costs as a ratable deduction over a period of 60 months or more.

D) capitalize and write off R&E costs only when the research project is abandoned or is worthless.

26. Green Corporation purchases specialty software from a software development firm for use in its business as of January 1 of the current year at a cost of $90,000. No hardware was acquired. How much of the cost can Green deduct this year?

A) $30,000

B) $45,000

C) $60,000

D) $90,000

27. In calculating depletion of natural resources each period,

A) cost depletion must be used.

B) percentage depletion must be used.

C) the smaller of cost depletion or percentage depletion must be used.

D) the greater of cost depletion or percentage depletion must be used.

Hau Lee​ Furniture, Inc., spends 45 ​% of its sales dollars in the supply chain and finds its current profit of ​$35,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit line to ​$40,000 so he can obtain the​ bank's approval for the loan.

Current Situation
Sales $140,000  
Cost of material $63,000 (45%)
Production cost $21,000 (15%)
Fixed cost $21,000 (15%)
Profit $35,000 (25%)
A)
What percentage improvement is needed in the supply chain strategy for profit to improve to $40,000​? What is the cost of material with a ​$40,000 ​profit?

A decrease of ..........% in material​ (supply-chain) costs is required to yield a profit of ​$40,000 for a new material cost of ............? . (Enter your response for the percentage decrease to one decimal place and enter your response for the new material cost as a whole​ number.)
B)
WHAT Percentage improvement is needed in the sales strategy for profit to improve to $40,000? what must sales be for profit to improve to $40,000?

an increase of .........% in sales is required to yield a profit of $ 40,000 , for a new level of sales of $......

Franklin Training Services (FTS) provides instruction on the use of computer software for the employees of its corporate clients. It offers courses in the clients’ offices on the clients’ equipment. The only major expense FTS incurs is instructor salaries; it pays instructors $5,300 per course taught. FTS recently agreed to offer a course of instruction to the employees of Novak Incorporated at a price of $490 per student. Novak estimated that 20 students would attend the course. Base your answers on the preceding information.

Required

1. Relative to the number of students in a single course, is the cost of instruction a fixed or a variable cost?

2. Determine the profit, assuming that 20 students attend the course.

3. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability?

4. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability?

The instructor has offered to teach the course for a percentage of tuition fees. Specifically, she wants $250 per person attending the class. Assume that the tuition fee remains at $490 per student.

6. Is the cost of instruction a fixed or a variable cost?

7. Determine the profit, assuming that 20 students take the course.

8. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability?

9. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability?

Interest during Construction

Dexter Construction Corporation is building a student condominium complex; it started construction on January 1, Year 1. Dexter borrowed $1 million specifically for the project by issuing a 10%, 5-year, $1 million note, which is payable on December 31 of Year 3. Dexter also had a 12%, 5-year, $3 million note payable and a 10%, 10-year, $1.8 million note payable outstanding all year.

In Year 1, Dexter incurred costs as follows:

Calculate Dexter's capitalized interest on the student condominium complex for Year 1.

Required:

once a project is under construction, what level of inspections are required during the various phases of construction?

Noise levels at various road construction sites were measured in decibels. The mean

              the noise levels in a sample of 64 construction sites was 85 decibels. The

              population standard deviation is 10 decibels. Find the 95% confidence interval for

              the true mean noise level at road construction sites.

In 2010, OSHA allowed the federal alternative work procedures to expire and redefined residential construction. Currently all workers must adhere to the standard. Do you agree with this? Take a position. In addition, what is different about residential construction vs. commercial construction - in your mind and in the regulations?

A printed circuit board manufacturer will construct a new plant. The potential sites have the following estimates of income and cost. A plant on Site A would cost $30.2 million (mil) to build, produce $31.6 mil/year in revenues, $22.7 mil/year in expenses, and last 18 years. At Site B construction will cost $34.5 mil with $35.2 mil of revenues per year, $25.2 mil/year in expenses and will also last 18 years. Use the internal rate of return to determine which site should be selected. The MARR is 25% per year.