4.

The Sloan Corporation must invest $186,000 to produce and market 15,000 units of Product X each year. The company uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Other cost information regarding Product X is as follows:

	Per Unit				Total
Direct materials	$	8.20
Direct labor	$	5.60
Variable manufacturing overhead	$	4.60
Fixed manufacturing overhead					$	84,000
Variable selling and administrative expenses	$	3.60
Fixed selling and administrative expenses					$	76,500

If Sloan Corporation requires a 20% return on investment, then the markup percentage on absorption cost for Product X (rounded to the nearest percent) would be:

Noreen rechecks 2017-04-04

22%

35%

28%

47%