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Slocum Company has determined the following information about a new product. The manufacturing process used for the product is very complex and it has a

Slocum Company has determined the following information about a new product. The manufacturing process used for the product is very complex and it has a higher proportion of indirect costs than direct costs. The company wants a 100% markup on cost. The following data is available:

Product cost according to traditional costingsystem$4.00 per unit

Product cost according to activity-based costingsystem$7.00 per unit

What price per unit should Slocum Company use for this new product?

A.$14.00

B.$7.00

C.$4

D.$5

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