Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set...

 

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Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 97,000 units next year, the unit product cost of a particular product is $46.90. The company's selling and administrative expenses for this product are budgeted to be $1,914,000 in total for the year. The company has invested $278,000 in this product and expects a return on investment of 14%. The markup on absorption cost for this product would be closest to: Multiple Choice O O O 42.9% 14.0% 55.9% 42.1% Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 97,000 units next year, the unit product cost of a particular product is $46.90. The company's selling and administrative expenses for this product are budgeted to be $1,914,000 in total for the year. The company has invested $278,000 in this product and expects a return on investment of 14%. The markup on absorption cost for this product would be closest to: Multiple Choice O O O 42.9% 14.0% 55.9% 42.1%

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