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Jabal Corporation Makes a Product with the Following Costs

question 43

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Jabal Corporation makes a product with the following costs: Jabal 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 28,000 units per year. The company has invested $560,000 in this product and expects a return on investment of 10%. The markup on absorption cost would be closest to: A)  46.0% B)  10.0% C)  141.1% D)  49.7%
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 28,000 units per year.
The company has invested $560,000 in this product and expects a return on investment of 10%.
The markup on absorption cost would be closest to:

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