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C. D. Leader Industries is planning to introduce a new product, DMA. It is expected that 10,000 units of DMA will be sold. The full
C.
Leader Industries is planning to introduce a new product, DMA. It is expected that 10,000 units of DMA will be sold. The full cost per unit is $300. Invested capital for this product amounts to $20 million. Leader's target rate of return on investment is 20%. The markup percentage for this product, based on the full cost, will be (Ignore the effect of income taxes): 666.67% 133.3%. 75.0%. 20.0% Almelo Manpower Inc. provides contracted bookkeeping services. Almelo has annual fixed costs of $100,000 and variable costs of $6 per hour. This year the company budgeted 50,000 hours of bookkeeping services. Almelo prices its services based on full cost and uses a cost-plus pricing approach. The company developed a billing price of $9 per hour. The company's markup level would be (Ignore the effect of income taxes): 66.6%. 33.3%. 50.0%. 12.5% D.
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