Papillon Co. has determined the following per unit amounts:


Direct materials $30 Fixed selling and administrative $60
Direct labor 36 Variable overhead 24
Desired ROI 33 Variable selling and administrative 15
Fixed overhead 45

The markup percentage using the absorption-cost approach is

a) 90%.

b) 80%.

c) 131%.

d) 102%.

b) 80%

Business

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Samuel Service Company uses the direct write-off method for recording bad debts. Journalize the following transactions for Mid-Iowa:

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