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Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold annually60,000Required
Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A:
Number of units sold annually60,000Required investment$596,000Unit product cost$30Selling and administrative expenses$448,000
If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15.0% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
Noreen rechecks 2017-04-04
15%
28%
30%
25%
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