The Markup Percentage Denominator in the Variable-Cost Approach Is the

question 135

Multiple Choice

The markup percentage denominator in the variable-cost approach is the

• A) desired ROI per unit.
• B) fixed costs per unit.
• C) manufacturing cost per unit.
• D) variable costs per unit.

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Definitions:

Minimum Required Rate

The lowest return on investment deemed acceptable by an investor or manager, often used in capital budgeting to evaluate potential projects.

Investment Opportunity

An asset or item that offers the potential for profit or income, either through capital appreciation or earnings.

Minimum Required Rate

This rate is often associated with the minimum return on investment or the cost of capital that a company or project needs to achieve to be deemed acceptable.

Net Operating Income

A company's income after operating expenses have been subtracted but before interest and taxes have been deducted.