Question
XII Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold
XII 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 | 41,000 |
|---|---|
| Required investment | $ 610,000 |
| Unit product cost | $ 40 |
| Selling and administrative expenses | $ 234,200 |
If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 10% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
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Performance Management In Retail And The Consumer Goods Industry Best Practices And Case Studies
Authors: Michael Buttkus
1st Edition
303012729X, 9783030127299
