1. Dieckman Company makes a product with the following
|Per Unit||Per Year|
| Fixed manufacturing|
| Variable selling and|
| Fixed selling and|
The company uses the absorption costing approach to cost-plus
pricing described in the text. The pricing calculations are based
on budgeted production and sales of 60,000 units per year.
The company has invested $300,000 in this product and expects a
return on investment of 10%.
|Direct labor is a variable cost|
in this company.
The markup on absorption cost is closest to?
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