=+PR 25-5B Product pricing using the cost-plus approach concepts;

differential analysis report for accepting additional business objs. 1, 2

✔ 3.

b. Markup percentage, 30%

Chapter 25 Differential Analysis and Product Pricing 1175 HD Labs Inc. is currently considering establishing a selling price for flat panel displays. The president of HD Labs has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 20% rate of return on invested assets.

Instructions 1. Determine the amount of desired profit from the production and sale of flat panel displays.