Maggie CoHas Variable Manufacturing Costs Per Unit of $20, and Fixed

question 21

Multiple Choice

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 $6.Maggie desires an ROI of $7.50 per unit.If Maggie Co.uses the absorption-cost approach, what is its markup percentage?

• A)8.33%
• B)50%
• C)16.67%
• D)25%

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Definitions:

Positioning Method

The strategy used by a company to differentiate its products or services from its competitors' and to occupy a specific place in the minds of the target market.

Perceptual Map

A visual representation of how consumers perceive and position products, brands, or companies relative to each other, typically based on important attributes.

Target Market

A specific group of consumers at which a company aims its products and services, identified through various factors like demographics, behaviors, and preferences.

Differentiated Targeting Strategy

A marketing approach where a company targets multiple market segments with specific products or marketing campaigns designed to meet the unique needs of each segment.