Use the Following Information for Questions
Brislin Products Has

question 66

Multiple Choice

Use the following information for questions
Brislin Products has a new product going on the market next year. The following data are projections for production and sales: $\begin{array}{ll}\text { Variable costs } & \$ 250,000 \\\text { Fixed costs } & \$ 450,000 \\\text { Rol } & 14 \% \\\text { Investment } & \$ 2,000,000 \\\text { Sales } & 200,000 \text { units }\end{array}$
-What would the markup percentage be if only 150,000 units were sold and Brislin still wanted to earn the desired ROI?

• A) 32.95%
• B) 53.33%
• C) 35.0%
• D) 44.00%

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Definitions:

Conversion Costs

Costs associated with converting raw materials into finished products, typically including labor and manufacturing overhead.

Conversion Costs

Costs in manufacturing that are directly related to converting raw materials into finished goods, primarily consisting of labor and overhead expenses.

Direct Material Costs

The cost of raw materials directly used in the production of goods.

Predetermined Rate

A rate established before the start of a project or period, often used in budgeting and costing, to assign overhead costs to specific activities.