Slocum Company Has Determined the Following Information About a New

Multiple Choice

Slocum 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:
$\begin{array} { l } \text {Product cost according to traditional costing system }&\$ 4.00 \text { per unit}\\ \text {Product cost according to activity-based costing system }&\$ 7.00 \text { per unit}\\\end{array}$

What price per unit should Slocum Company use for this new product?

A) $4.00
B) $7.00
C) $8.00
D) $14.00