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Question - Alpha Company's Manager is considering selling price for product C. The company is using Absortion Costing in determining the total cost for each product.
From the financial perspective, the company is planned to operate with cost:
Production Expence Rp 3.000.000.000
Administration Expense 200.000.000
Marketing Expense 300.000.000
The predicted total asset in the beginning year is Rp 4.000.000.000, and the return of investment (ROI) is 25%.
Required - Determine the mark up percentage for product C in Alpha Company using Cost-Plus Pricing Method and Absortion Costing!
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