Jaber Corporation Makes a Product with the Following Costs

question 60

Multiple Choice

Jaber 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 52,000 units per year. The company has invested $200,000 in this product and expects a return on investment of 9%.
The markup on absorption cost would be closest to:

• A)37.7%
• B)9.0%
• C)110.8%
• D)37.1%

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Definitions:

Data Privacy

The aspect of information technology that deals with the ability an individual or organization has to determine what data in a computer system can be shared with third parties.

Hackers

Individuals who exploit weaknesses in digital systems or networks, often for malicious purposes, but sometimes also to improve security or for non-malicious reasons.

Duty to Defend

An obligation, often found in insurance contracts, requiring the insurer to provide legal defense against claims covered by the policy.

Insurer

An entity that provides insurance, offering protection against financial loss in exchange for premiums.