Jabal Corporation Makes a Product with the Following Costs

question 62

Multiple Choice

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%

---

Definitions:

Public Notice

An announcement conveyed through accessible channels to inform the public about legal actions, government activities, or public interest issues.

Collateral

Property or assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to agreed terms.

Public Filing

The process of submitting financial documents and other important corporate information to a regulatory authority for public disclosure.

Financing Statement

A document filed to give public notice of a secured transaction, typically in relation to personal property, establishing a priority interest in the property for the creditor.