(Appendix 12A) Marvel Company estimates that the following costs and activity would be associated with...
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Accounting
(Appendix 12A) Marvel Company estimates that the following costs and activity would be associated with the manufacture and sale of one unit of product Y:
Number of Units Sold Annually
20,000
Required Investment
$400,000
Unit Product Cost
$25
Selling, General, and Administrative Expenses
$130,000
If the company uses the absorption costing approach to cost-plus pricing and desires a 15% rate of return on investment (ROI), what would be the required markup on absorption cost for product Y?
Multiple Choice
12%.
15%.
26%.
38%.
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