The markup on absorption cost for this product would be

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Question

Ladle Corporation uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 96,000 units next year, the unit product cost of a particular product is $46.80.

The company's selling and administrative expenses for this product are budgeted to be $1,913,000 in total for the year. The company has invested $277,000 in this product and expects a return on investment of 13%.

The markup on absorption cost for this product would be closest to?

Reference no: EM132326225

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