Dotterel Corporation Uses the Variable Cost Method of Product Pricing

question 154

Multiple Choice

Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% return on invested assets of $350,000. ​
-The markup percentage for the sale of Dotterel's product is

• A)14.0%
• B)5.6%
• C)45.7%
• D)11.2%

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Definitions:

Defence Mechanisms

Unconscious psychological strategies used to cope with reality and maintain self-image by reducing anxiety arising from unacceptable thoughts or feelings.

Reciprocal Determinism

A concept in psychology that suggests a person's behavior both influences and is influenced by personal factors and the social environment.

Mutual Dependency

A condition in which two or more entities rely on each other equally for resources, support, or existence.

Psychic Determinism

The psychoanalytic concept that all mental processes are not spontaneous but are determined by the unconscious or pre-existing mental complexes.