Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
A) 12%
B) 15%
C) 60%
D) 72%

Question

Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A:  If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
A) 12% 
B) 15% 
C) 60% 
D) 72%

Quizplus · Accepted Answer

The Answer of Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A:  If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:
A) 12% 
B) 15% 
C) 60% 
D) 72%

Minden Corporation Estimates That the Following Costs and Activity Would