(Appendix 12A)What is the markup percentage needed on Product S in order to achieve the company's required return on investment?
A) 29%.
B) 37%.
C) 40%.
D) 50%.Markup = (800,000 * .20 + 40,000 * 5 + 240,000)/(40,000 * 37.50)= 40%.

Question

Quizplus · Accepted Answer

Based on the calculations in Appendix 12A, a markup percentage of 40% is needed on Product S to achieve the company's required return on investment. Therefore, choice C is the best choice.

(Appendix 12A)What Is the Markup Percentage Needed on Product S