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Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and
Longwood, Inc. 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 1,000 units, with estimated costs as follows: Variable costs: Manufacturing $462, 090 Selling and Administrative 112, 090 Total variable costs $ 574,000 Fixed costs: Manufacturing $312, 000 Selling and Administrative 192, 000 Total fixed costs 504, 000 Total costs $1, 078, 000 The average amount of capital invested in the laptop product line is $880,000 and Longwood's target return on investment is 15% If Longwood uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be: Multiple Choice O 12.24% O 18.15% O 26.07%. 56.33%. O None of the answers is correct
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