A Firm Employs Average Assets of $600 000 and Calculates

question 8

Multiple Choice

A firm employs average assets of $600 000 and calculates its mark-up on full cost based on a desired return on investment of 20 per cent. Expected production is 10 000 units, and the full cost per unit is $80. What is the mark-up percentage?

• A) 20%
• B) 120%
• C) 15%
• D) 25%

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards or punishments rather than by the inherent satisfaction of the activity itself.

Self-actualization

The accomplishment or manifestation of one’s inherent abilities and possibilities, perceived as a universal impulse or requirement found in humans.

Autonomy

The capacity to make an informed, uncoerced decision or the right of individuals to direct their own lives.

Competence

The ability and skill to efficiently perform a task or job, often measured against a standard or benchmark.