Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 2

Multiple Choice

Dotterel Corporation uses the variable cost concept 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% rate of return on invested assets of $350,000. The markup percentage for the sale of the company's product is

• A) 14%
• B) 5.6%
• C) 45.71%
• D) 11.2%

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Definitions:

Ego-Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety or unacceptable thoughts and feelings.

Regression

A defense mechanism in which an individual's behavior reverts to an earlier stage of development, often in response to stressful situations.

Identification

The process of recognizing or establishing the identity of a person or thing, often through specific marks or documents.

Compensation

Remuneration or payment given for services rendered or to cover the loss or damage that has been suffered.