Use the Following Information to Answer the Following Questions

Multiple Choice

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.