16. If the target profit is $60,000 for a volume of 480 units, fixed costs are $168,000, and the variable cost per unit is $450, then the markup percentage on variable cost would be:
A) 104.56%.
B) 105.56%.
C) 106.00%.
D) 106.45%.
E) some other amount.
17. Which of the following is (are) a key feature of target costing?
A) The use of cross-functional teams.
B) A focus on the customer.
C) A focus on product design.
D) A focus on process design.
E) All of the above.
18. Which of the following management tools is a key component of target costing?
A) Management simulation.
B) Linear programming.
C) Value engineering.
D) Goal programming.
E) Performance reporting systems.
