Use the Following Information to Answer the Following Questions

question 1

Multiple Choice

Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-If Longwood uses cost-plus pricing based on absorption cost, the markup percentage the company must use would be:

• A) 15.72%.
• B) 21.64%.
• C) 29.56%.
• D) 58.93%.
• E) None of the answers is correct.

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Definitions:

Practical Implications

Real-world consequences or applications of theories, actions, or decisions in a specific field or situation.

Value-Added Worker

An employee whose work activities add worth to the product or service, thereby contributing to the organization's success.

Upside-Down Pyramid

A management concept where the traditional hierarchy is reversed to empower lower-level employees and enhance communication and decision-making.

Vital Job

A role that is crucial for the operation or success of an organization, typically involving tasks that are essential to the organization's objectives.