Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-If Longwood uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be:
A) 15.72%.
B) 21.64%.
C) 29.56%.
D) 58.93%.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-If Longwood uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be:
A) 15.72%. 
B) 21.64%. 
C) 29.56%. 
D) 58.93%. 
E) None of the answers is correct.

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The Answer of Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-If Longwood uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be:
A) 15.72%. 
B) 21.64%. 
C) 29.56%. 
D) 58.93%. 
E) None of the answers is correct.

Use the Following Information to Answer the Following Questions