Quamma Corporation Makes a Product That Has the Following Costs

question 78

Essay

Quamma Corporation makes a product that has the following costs:
The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on budgeted production and sales of 39,000 units per year.The company has invested $640,000 in this product and expects a return on investment of 9%.Required:a. Compute the markup on absorption cost. (Round your intermediate and final answer to 2 decimal places.)b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2 decimal places.)

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Definitions:

Rule-based Theories

Philosophical theories that emphasize the importance of following structured, predefined rules or guidelines to determine moral conduct or decision-making processes.

Character Theories

Theories that attempt to explain aspects of a person's character, often focusing on traits, motivations, and behaviors that define their personality.

Moral Rights

Rights concerning the recognition of personal autonomy and the protection of individuals from harm, aligning with ethical standards and moral principles.

Consequential Theories

Ethical theories that judge actions based solely on their outcomes or consequences, focusing on the greater good or harm resulting from them.