Question

When determining the markup to be used in a cost-plus pricing formula, many companies base the markup on a target: return on investment. capital turnover. sales margin. earnings per share. debt-to-equity ratio.

Answer 1

return on investment

Step-by-step explanation:

At the time of calculating the markup that used for the formula of cost plus pricing many companies would base the markup on the target return on investment as the return on investment considered the net operating income as it takes after considering all the other type of cost

Therefore as per the given situation the first option is correct