The Management of Musselman Corporation Would Like to Set the Selling

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 the new product would be closest to:

A) 51.0%
B) 12.5%
C) 24.0%
D) 59.5%