Eckert Company Uses the Absorption Costing Approach to Cost-Plus Pricing

question 44

Multiple Choice

Eckert Company uses the absorption costing approach to cost-plus pricing to set prices for its products. Based on budgeted sales of 18,000 units next year, the unit product cost of a particular product is $60.40. The company's selling, general, and administrative expenses for this product are budgeted to be $370,800 in total for the year. The company has invested $260,000 in this product and expects a return on investment of 11%.
- The markup on absorption cost for this product would be closest to which of the following?

• A) 11.0%.
• B) 34.1%.
• C) 36.7%.
• D) 45.1%.

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Definitions:

Pathogen Established

Refers to the successful colonization and growth of a disease-causing microorganism within a host.

Reservoir Host

An organism that harbors a pathogen for an extended period, without suffering from disease caused by the pathogen, and serves as a source of infection.

Airborne Transmission

A mode of infectious disease transmission through the air, involving the spread of droplets or particles carrying infectious agents.

Tuberculosis

A contagious infection caused by the bacterium Mycobacterium tuberculosis, primarily affecting the lungs but can spread to other organs, characterized by cough, fever, and weight loss.