Tropical Company sells 3,650 frying pans per year. The owner has invested $80,000 in the business and
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Tropical Company sells 3,650 frying pans per year. The owner has invested $80,000 in the business and desires an 8% return on his investment (ROI=Net Income\Investments).
Product Costs
VC $4.5 per pan
FC $78,000 per year
Selling and Administrative Costs VC $3.00 per pan
FC $15,000 per year
If Tropical uses the absorption approach to its cost-based pricing, what is the mark-up percentage and the selling price?
Related Book For
Cost Management Measuring, Monitoring and Motivating Performance
ISBN: 978-1119185697
3rd Canadian edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott, Liang Hsuan Chen, Gail Cook
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