Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000.
-The markup percentage on product cost for the company's product is
A)23.4%
B)10.9%
C)26.1%
D)18.0%

Question

Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000.  ​
-The markup percentage on product cost for the company's product is
A)23.4% 
B)10.9% 
C)26.1% 
D)18.0%

Quizplus · Accepted Answer

Markup percentage = (Selling price - Cost price) / Cost price * 100= (125 - 100) / 100 * 100= 25%

Mallard Corporation Uses the Product Cost Method of Product Pricing