Mallard Corporation uses the product cost concept of product pricing. Below is c

Question

Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.

Fixed factoryoverhead cost $82,000~Fixed selling and admin costs 45,000~variable direct materials cost per unit 5.50~variable direct labor cost per unit 7.65~variable factory overhead costs per unit 2.25~variable sellingand admin cost per unit .90


The markup percentage on product cost for the company’s product is:
a. 10.98%

b. 18%

c. 23.4%

d. 26.1%

Explanation / Answer

c. 23.4%

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