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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