Delsey Company Manufactures Product a Which Has a Selling Price

Multiple Choice

Delsey Company manufactures product A which has a selling price of $48 per unit. Unit costs associated with the manufacture and sale of product A follow (based on 30,000 units manufactured and sold each year) : The company uses the absorption costing approach to cost-plus pricing described in the text. The percentage markup being used to determine the selling price for product A is closest to:

A) 100.0%
B) 37.5%
C) 60.0%
D) 40.0%