Multiple Choice
SLOW Company has determined the following information about a new product.The manufacturing process used for the product is very complex and it has a higher proportion of indirect costs than direct costs.The company wants a 100% markup on cost.The following data is available: Product cost according to traditional costing system………...$4.00 per unit
Product cost according to activity-based costing system……$7.00 per unit
What price per unit should SLOW Company use for this new product?
A) $4.00
B) $7.00
C) $8.00
D) $14.00
Correct Answer:
Verified
Correct Answer:
Verified
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