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

question 79

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 are $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) 16.67%
• C) 25%
• D) 50%

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Definitions:

Frankfurt School

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Authoritarian Personality Theory

A theory that suggests that a personality type characterized by strict adherence to conventional values and a belief in absolute obedience or submission to authority figures may be more susceptible to following authoritarian regimes.

Theodor Adorno

A German philosopher and sociologist known for his critical theory of society, contributions to aesthetics, and critique of culture and authoritarianism.

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