Multiple Choice
The management of Musselman Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product:
Management plans to produce and sell 9,000 units of the new product annually. The new product would require an investment of $1,305,000 and has a required return on investment of 10%.
-The markup percentage on absorption cost is closest to:
A) 25%
B) 34%
C) 15%
D) 10%
Correct Answer:
Verified
Correct Answer:
Verified
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