Mark-up base ambiguous in absorption costing Steps:

• Identify full absorption cost as direct cost plus absorbed overhead per unit.
• Note selling price = full cost × (1 + mark-up percentage), but mark-up base (direct or full cost) unspecified.
• Without base, cannot solve for absorbed overhead = selling price / 1.5 - direct cost (if on full) or other variants.
• Machine hours given, but overhead per unit unknown, so rate indeterminate.

Not enough information.

Why C is correct:

• Assumes arbitrary 40% profit margin on selling price (150 × 0.6 = 90 full cost; overhead = 40; 40 / 2 = 20), but defies 50% mark-up definition.

Why the others are wrong:

• A: Assumes ~57% margin (overstates profit).
• B: Assumes ~47% margin (understates profit).
• D: Assumes ~13% margin (understates profit).

Final answer: Not enough information.