Silco Pty Ltd Manufactures Various Lines of Computer Equipment

question 19

Multiple Choice

Silco Pty Ltd manufactures various lines of computer equipment. They are planning to introduce a line of laptop computers in January 2008. Current plans call for the production and sale of 1000 computers with estimated production costs as follows.
The average amount of capital invested in the laptop computer line is $900 000 and Silco's target return on investment for the line is 18 per cent. What is the mark-up percentage if the company uses cost-plus pricing based on total variable cost?

• A) 116.7%
• B) 142.7%
• C) 121.6%
• D) 58.9%

---

Definitions:

Endorphins

Naturally occurring peptides in the brain that act as neurotransmitters, known to relieve pain and induce feelings of pleasure or euphoria.

Heroin Use

The act of consuming heroin, an illegal opioid drug, which can lead to severe physical and psychological dependence and health issues.

Physical Exercise

Refers to any bodily activity that enhances or maintains physical fitness and overall health and wellness.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, including nerves and ganglia, that connects the central nervous system to limbs and organs.