Use This Information for Mallard Corporation to Answer the Questions

question 127

Multiple Choice

Use this information for Mallard Corporation to answer the questions that follow.
​
Mallard Corporation uses the product cost concept of product pricing. Below is the cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
​
$$\begin{array} { l r } \text { Fixed factory overhead cost } & \$ 82,000 \\\text { Fixed selling and administrative costs } & 45,000 \\\text { Variable direct materials cost per unit } & 5.50 \\\text { Variable direct labor cost per unit } & 7.65 \\\text { Variable factory overhead cost per unit } & 2.25 \\\text { Variable selling and administrative cost per unit } & 0.90\end{array}$$
-The markup percentage on product cost for the company's product is

• A) 23.4%
• B) 10.98%
• C) 26.1%
• D) 18%

---

Definitions:

Temporal Lobes

The lobes that are involved in the reception and interpretation of auditory information; they contain the primary auditory cortex, Wernicke’s area, and the temporal association areas.

Prefrontal Lobotomy

A surgical procedure once used to treat mental disorders, involving the removal or destruction of part of the prefrontal cortex, now largely discredited due to severe side effects.

Electroconvulsive Therapy

Electroconvulsive Therapy (ECT) is a psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Trephining

An ancient medical practice that involves drilling or scraping a hole into the human skull to treat health issues or release pressure.