The markup percentage in the absorption-cost approach is calculated by dividing the sum of the desired ROI per unit and
A)fixed costs per unit by manufacturing cost per unit.
B)fixed costs per unit by variable costs per unit.
C)selling and administrative expenses per unit by manufacturing cost per unit.
D)selling and administrative expenses per unit by variable costs per unit.

Question

Quizplus · Accepted Answer

In the absorption-cost approach, the markup percentage is calculated by dividing the sum of the desired ROI per unit and selling and administrative expenses per unit by the manufacturing cost per unit.

The Markup Percentage in the Absorption-Cost Approach Is Calculated by Dividing