Lacy Corporation Uses the Absorption Costing Approach to Cost-Plus Pricing

question 30

Multiple Choice

Lacy Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 86,000 units next year, the unit product cost of a particular product is $81.60. The company's selling and administrative expenses for this product are budgeted to be $1,247,000 in total for the year. The company has invested $360,000 in this product and expects a return on investment of 12%. The markup on absorption cost for this product would be closest to:

• A)12.0%
• B)18.4%
• C)29.8%
• D)17.8%

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Definitions:

Non-Heterosexual

A term used to describe sexual orientations that do not exclusively involve attraction to the opposite sex, such as gay, lesbian, bisexual, and others.

Sexuality

The capacity for sexual feelings, the spectrum of attractions, and behaviors towards others, as well as the identification with specific sexual orientations.

Extended Periods

This term refers to durations of time that are longer than usual or expected, often used in the context of activities or phenomena.

Puberty

The period of maturation during which the sexual organs mature.