Moon Company Uses the Variable Cost Concept of Applying the Cost-Plus

question 116

Essay

Moon Company uses the variable cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows:
Moon desires a profit equal to a 18% rate of return on invested assets of $1,440,000.
Round your markup percentage to one decimal place and other intermediate calculations and final answer to two decimal places.

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Definitions:

Organizational Strategy

A plan of action designed to achieve a long-term or overall aim within an organization.

Technological Strategies

Plans and actions implemented to leverage technology for competitive advantage and operational improvement.

Competitive Advantage

A condition that allows a company or country to produce goods or services at a lower price or in a more desirable fashion for customers than its competitors.

Organization's Culture

The shared values, beliefs, customs, and practices that influence the social and psychological environment of an organization.