Question
Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold annually
Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A:
| Number of units sold annually | 43,000 |
|---|---|
| Required investment | $ 630,000 |
| Unit product cost | $ 42 |
| Selling and administrative expenses | $ 303,660 |
If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 12% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
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Auditing and Assurance services an integrated approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
16th edition
978-0134075754, 134075757, 134065824, 978-0134065823
