The reasons for using the variable-cost approach include all of the following except this approach 

a.avoids arbitrary allocation of common fixed costs to individual product lines.

b.is more consistent with cost-volume-profit analysis.

c.provides the most defensible bases for justifying prices to all interested parties.

d.provides the type of data managers need for pricing special orders.

a137.Maggie Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit is $15. Variable selling and administrative costs per unit are $4, while fixed selling and administrative costs per unit are $6. Maggie desires an ROI of $7.50 per unit. If Maggie Co. uses the absorption-cost approach, what is its markup percentage?

  

a138.Maggie Co. has variable manufacturing costs per unit of $20, and fixed manufacturing cost per unit is $10. Variable selling and administrative costs per unit are $5, while fixed selling and administrative costs per unit are $2. Maggie desires an ROI of $8 per unit. If Maggie Co. uses the variable-cost approach, what is its markup percentage?

  

 

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Question 137 If Maggie Co uses the absorptioncost approach we need to calculate the total cost per unit including both variable and fixed costs and th... View the full answer