Magpie Corporation Uses the Total Cost Concept of Product Pricing

Multiple Choice

Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. The markup percentage on total cost for the company's product is:

A) 21.0%
B) 22.7%
C) 15.8%
D) 24.0%