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Jaakola Corporation Makes a Product with the Following Costs

Question 136

Multiple Choice

Jaakola Corporation makes a product with the following costs: Jaakola 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 28,000 units per year. The company has invested $360,000 in this product and expects a return on investment of 15%. The markup on absorption cost would be closest to: A) 27.1% B) 29.9% C) 84.3% D) 15.0% 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 28,000 units per year. The company has invested $360,000 in this product and expects a return on investment of 15%. The markup on absorption cost would be closest to:


A) 27.1%
B) 29.9%
C) 84.3%
D) 15.0%

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