Marvel Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product Y: If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for product Y would be:
A) 12%
B) 15%
C) 26%
D) 38%

Question

Marvel Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product Y:  If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for product Y would be:
A) 12% 
B) 15% 
C) 26% 
D) 38%

Quizplus · Accepted Answer

The Answer of Marvel Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product Y:  If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for product Y would be:
A) 12% 
B) 15% 
C) 26% 
D) 38%

Marvel Corporation Estimates That the Following Costs and Activity Would