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:

Question

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:

Quizplus · Accepted Answer

The Answer of 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:

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