Answer:
20%
Explanation:
<em>Absorption costings values inventory and units produced using the full cost per units.</em>
Total sales values = Total cost + Return on investment
Return on investment = 20% × 2,000,000 = 400,000.
Profit per unit = 400,000/10,000 units
= 40 per unit
Total production cost = Variable cost + Fixed production overhead
= ((150 + 20) × 10,000 + ( 300,000)
= 2,000,000
Cost per unit = 2,000,000/10,000= 200
mark-up in (%) = profit per unit/ cost per unit
= (40/200)× 100 = 20%
