Holding All Other Things Constant,an Increase in the Company's Required

question 59

Multiple Choice

Holding all other things constant,an increase in the company's required ROI will affect:

• A)the markup under the absorption costing approach to cost-plus pricing.
• B)the markup used to compute the profit-maximizing price.
• C)both the markup under the absorption costing approach to cost-plus pricing and the markup used to compute profit-maximizing price.
• D)neither the markup under the absorption costing approach to cost-plus pricing nor the markup used to compute profit-maximizing price.