Perwin Corporation Estimates That an Investment of $400,000 Would Be

question 35

Multiple Choice

Perwin Corporation estimates that an investment of $400,000 would be needed to produce and sell 30,000 units of Product B each year. At this level of activity, the unit product cost would be $25. Selling and administrative expenses would total $350,000 each year. The company uses the absorption costing approach to cost-plus pricing described in the text. If a 15% rate of return on investment is desired, then the required markup for Product B would be closest to:

• A)15%
• B)49%
• C)55%
• D)58%

Recognize the significance of infrastructure in global marketing strategies.

Identify the characteristics and strategies of entering foreign markets.

Analyze the role of cultural, economic, and political factors in global business.

Understand the concept and application of glocalization in global marketing.

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Definitions:

Administrative Burden

The workload and costs associated with bureaucratic procedures and regulations, often mentioned in the context of criticisms of government or organizational inefficiency.

U.S. Income Tax

The federal tax levied by the Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the total income.

Machiavellianism

The extent to which someone is emotionally detached and manipulative.