Jaber Corporation makes a product with the following costs: The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 52,000 units per year. The company has invested $200,000 in this product and expects a return on investment of 9%.
The markup on absorption cost would be closest to:
A)37.7%
B)9.0%
C)110.8%
D)37.1%

Question

Jaber Corporation makes a product with the following costs:  The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 52,000 units per year. The company has invested $200,000 in this product and expects a return on investment of 9%.
The markup on absorption cost would be closest to:
A)37.7% 
B)9.0% 
C)110.8% 
D)37.1%

Quizplus · Accepted Answer

The Answer of Jaber Corporation makes a product with the following costs:  The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 52,000 units per year. The company has invested $200,000 in this product and expects a return on investment of 9%.
The markup on absorption cost would be closest to:
A)37.7% 
B)9.0% 
C)110.8% 
D)37.1%

Jaber Corporation Makes a Product with the Following Costs