Magpie Corporation Uses the Total Cost Concept of Product Pricing

question 133

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) 22.7%
• C) 15.8%
• D) 24.0%

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Definitions:

ADH

Antidiuretic hormone, a hormone that regulates water balance in the body by increasing the kidneys' ability to reabsorb water.

Parathyroid Glands

Small endocrine glands in the neck that produce parathyroid hormone, regulating calcium and phosphorus balance in the body.

Hyperkalemia

Hyperkalemia is a medical condition characterized by higher than normal levels of potassium in the bloodstream, which can affect heart and neuromuscular function.

Cellular Injury

Damage to cells that can be caused by a wide range of factors including chemicals, lack of oxygen, or physical trauma.