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Dexter Corporation manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production
Dexter Corporation manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,250 units, with estimated costs as follows: Variable costs: Manufacturing Selling and Administrative Total variable costs Fixed costs: Manufacturing Selling and Administrative Total fixed costs Total costs $460,000 110,000 $310,000 $ 570,000 190,000 500,000 $1,070,000 The average amount of capital invested in the laptop product line is $1,000,000 and Landing's target return on investment is 18%. If dexter uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be: a. 16.82%. b. 22.73%. c. 30.65%. Bd. 62.34%. ABC
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