Glover Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Glover desires a profit equal to a 12% rate of return on assets. Assets of $785,000 are devoted to producing Product B, and 100,000 units are expected to be produced and sold.

Step-by-step explanation:

The questions are:

a. Compute the markup percentage using the total cost concept.

b. Compute the selling price of Product B.

a. The mark up percentage will be calculated as:

= Desired Profit / Total Cost

= ($785000 × 12%) / [($15 × 100,000) + $70,000]

= ($785,000 × 0.12) / [($15 × 100,000) + $70,000]

= $94,200 / $1,570,000

= 0.06

= 6%

b. Selling price of Product B will be calculated as:

= Cost amount per unit + Markup

= $15.70 + ($15.70 × 6%)

= $15.70 + $0.94

= $16.64

delaney would like to make a 5lb nut mixture that is 60% peanuts and 40% almonds.

she has several pounds of peanuts and several pounds of a mixture that is 20% peanuts and 80% almonds.

let 'p' represent the number of pounds of peanuts needed to make the new mixture, and  

let 'm' represent the number of pounds of the 80% almond-20% peanut mixture.

:

p + m = 5

therefore

m = (5-p)

write an equation based on the percent of peanuts

1p + .2m = .6(5)

replace m with (5-p)

p + .2(5-p) = .6(5)

p + 1 - .2p = 3

p - .2p = 3 - 1

.8p = 2

p = 2/.8

p = 2.5 lbs of peanuts required

then

5 - 2.5 = 2.5 lbs of the peanut/almond mixture required

:

a) what is the system that models this situation?

p + m = 5

1p + .2m = .6(5)