Silco Pty Ltd Manufactures Various Lines of Computer Equipment

question 34

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.If Silco uses cost-plus pricing based on absorption cost,determine the mark-up percentage the company must use.

• A) 21.6%
• B) 15.7%
• C) 29.5%
• D) None of the given answers

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Definitions:

Antibodies

Y-shaped proteins produced by the immune system that identify and neutralize foreign objects like bacteria and viruses.

Agglutination

The clumping together of cells or particles, commonly observed in blood reactions.

Hemolysis

The rupture or destruction of red blood cells, leading to the release of hemoglobin into the surrounding fluid.

Vitamin K

A vitamin that dissolves in fats, crucial for creating proteins needed for clotting blood and metabolizing bones.