17 Questions
What is the first step in determining the cost per service unit?
Calculating the total semi-variable cost
In Example #1, what is considered a fixed cost for La MiraBella Hotel's cleaning service?
Cleaning team's salary
How many hours does it take for the cleaning team at La MiraBella Hotel to clean the entire hotel daily?
12 hours
What is the total service unit calculation for La MiraBella Hotel?
360 hours
What is the formula to calculate service cost per unit?
$\text{Total Service Cost} \div \text{Total Service Unit}$
What is the first step to calculate the product cost per unit?
Sum up all direct materials and direct labor costs
How is the product cost per unit calculated in the given scenario?
Divide total product cost by the number of units produced
What is service costing mainly used for?
Determining the cost of providing a specific service
Which cost is not included in the calculation of product cost per unit?
Preservatives cost
What should be done after summing up all direct materials and direct labor costs?
Calculate total overhead costs
If 10,000 pieces of ice cream are produced instead of 7,000, how does this change affect the product cost per unit?
Increases the product cost per unit
What is a predetermined markup percentage?
A percentage added to a product's cost to determine its selling price
Which formula is used to calculate the predetermined markup percentage?
(Desired profit / Total Cost of the product or service) * 100
In Edward's example, what revenue increase does he aim for?
35%
What is the purpose of determining the total product cost according to the text?
To calculate the selling price accurately
What does the desired profit represent in the context of business?
The profit level a business aims to achieve over time
What formula can Edward use to compute his desired profit?
(Desired Revenue – Total Cost of the product or service)
This quiz covers the formulas for calculating selling price, predetermined markup percentage, and desired profit in business. Learn how to calculate markup percentage for pricing products or services based on cost and profit goals.
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