Answer:
Mark- up = 23.3%
Explanation:
<em>Absorption costing is method of costing where overheads are charged to units produced using volume-based bases. e.g machine hours, labour hours e.t.c. Units are valued using full cost per unit</em>
Full cost per unit= Direct material cost + direct labor cost + Variable production overhead + Fixed production overhead
Fixed production overhead = Budgeted overhead/Budgeted production units
Fixed production overhead = $300,000/150,000 units=2
Total cost = 150 + 20 + 2= $172
Total cost per unit using absorption costing = $172
Desired ROI = 20%. × 2,000,000= $400,000
Profit per unit = 400,000/10,000 units =40
Mark- up = Profit/Cost = 40/172× 100 = 23.3%
Mark- up = 23.3%
Answer:
$7,380
Explanation:
The computation of the interest expense is shown below:
= Issued value of the bond × rate of interest × number of months ÷ total number of months in a year
= $82,000 × 12% × 9 months ÷ 12 months
= $7,380
Note: This is the answer but the same is not mentioned in the given options.
Basically we multiplied the issued value with the interest rate and the time period in months
A. Affordability of Retirement