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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:
Genetic Drift
A mechanism of evolution where random changes in the frequency of alleles within a population occur, often having a significant impact on smaller populations.
Habitat Isolation
A form of reproductive isolation where two species live in the same area but occupy different habitats, so they rarely encounter each other or breed.
Prezygotic
Refers to mechanisms that prevent individuals of different species or populations from mating or fertilizing eggs before the formation of a zygote.
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