Magpie Corporation Uses the Total Cost Concept of Product Pricing

question 51

Multiple Choice

Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. The markup percentage on total cost for the company's product is

• A) 21.0%
• B) 22.6%
• C) 15.8%
• D) 24.0%

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Definitions:

Impersonal Journalism

A style of journalism that prioritizes objectivity and factuality, minimizing the influence of personal bias.

Formal Writing Style

A style of writing characterized by a professional tone, proper grammar, and a clear structure, typically used in academic and business contexts.

Monotony

The uniformity or lack of variation that can lead to boredom or a lack of interest.

Humour

A quality that makes something laughable or amusing; often used to lighten the mood or enhance communication.