Use this information for Dotterel Corporation to answer the questions that follow.
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Dotterel Corporation uses the variable cost concept of product pricing. Below is the cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000.
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-The markup percentage for the sale of the company's product is
A) 14%
B) 5.6%
C) 45.71%
D) 11.2%

Question

Use this information for Dotterel Corporation to answer the questions that follow.
?
Dotterel Corporation uses the variable cost concept of product pricing. Below is the cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% rate of return on invested assets of $350,000.
??
  
-The markup percentage for the sale of the company's product is
A) 14% 
B) 5.6% 
C) 45.71% 
D) 11.2%

Quizplus · Accepted Answer

The markup percentage is calculated based on the cost price and the selling price. The formula for markup percentage is [(Selling Price - Cost Price) / Cost Price] * 100. Without the specific numbers for cost and selling price, we can't calculate the exact percentage. However, given the options, if the correct answer is known to be C) 45.71%, it suggests that for every $1 of cost, the company adds approximately 45.71 cents as markup before selling the product.

Use This Information for Dotterel Corporation to Answer the Questions