Solved

Jaakola Corporation Makes a Product with the Following Costs

Question 45

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%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q40: Wenner Corporation would like to use target

Q41: Eytchison Industrial Products Inc.has developed a new

Q43: Wenner Corporation would like to use target

Q44: Morr Logistic Solutions Corporation has developed a

Q46: Ecob Corporation uses the absorption costing approach

Q48: Twisdale Corporation manufactures numerous products, one of

Q50: Buzby Corporation manufactures numerous products,one of which

Q76: Ralph Plastics Equipment Corporation has developed a

Q130: In value-based pricing, the economic value to

Q244: Conaghan Avionics Corporation has developed a new