Dickson Corporation Makes a Product with the Following Costs

question 80

Multiple Choice

Dickson 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 60, 000 units per year. The company has invested $320, 000 in this product and expects a return on investment of 15%.
Direct labor is a variable cost in this company.
The markup on absorption cost is closest to:

• A)96.5%
• B)15.0%
• C)31.2%
• D)30.0%

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Definitions:

AUM

Assets Under Management, the total market value of investments managed by a person or entity on behalf of clients.

Redemption Notices

Notifications sent to holders of a financial instrument about the early redemption or buyback of the instrument before its maturity date.

Lock-Up

A period following an initial public offering (IPO) where major shareholders are restricted from selling their shares, often lasting from 90 to 180 days to prevent market flooding.

Redeem Funds

Redeeming funds refers to the process of exchanging a mutual fund, or other type of investment fund shares, for cash or for its underlying assets' worth.