Joeston Corporation Makes a Product with the Following Costs

question 25

Multiple Choice

Joeston Corporation makes a product with the following costs: The company uses the absorption costing approach to cost-plus pricing described in the text.The pricing calculations are based on budgeted production and sales of 14, 000 units per year.The company has invested $540, 000 in this product and expects a return on investment of 10%.The markup on absorption cost would be closest to:

• A)27.1%
• B)124.2%
• C)34.2%
• D)10.0%

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Definitions:

Carpals

The eight small bones that make up the wrist, connecting the hand to the forearm.

Metacarpals

The five long bones in the hand that are located between the wrist (carpal bones) and the fingers (phalanges).

Tarsals

The group of seven bones in the foot located between the lower leg bones and the metatarsals of the foot.

Metatarsals

The five long bones in the foot located between the ankle and toes, crucial for walking and movement.