Dotterel Corporation Uses the Variable Cost Concept of Product Pricing

question 3

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 a 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:

Altruism

The selfless concern for the well-being of others without expecting any reward.

Companionate Love

A deep, affectionate attachment characterized by mutual respect, attachment, and commitment, generally found in long-term relationships.

Social Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Bystander Effect

A social psychology concept where people are less inclined to assist someone in distress when they are in the company of others.