The Sloan Corporation Must Invest $120, 000 to Produce and Market

Multiple Choice

The Sloan Corporation must invest $120, 000 to produce and market 16, 000 units of Product X each year.The company uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products.Other cost information regarding Product X is as follows: If Sloan Corporation requires a 15% return on investment, then the markup percentage on absorption cost for Product X (rounded to the nearest percent) would be:

A) 41%
B) 16%
C) 29%
D) 22%