Kirgan, Incorporated, manufactures a product with the following costs: The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 82,000 units per year.The company has invested $230,000 in this product and expects a return on investment of 16%.The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)
A) $64.90
B) $72.85
C) $81.60
D) $51.27

Question

Kirgan, Incorporated, manufactures a product with the following costs:  The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 82,000 units per year.The company has invested $230,000 in this product and expects a return on investment of 16%.The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)
A) $64.90 
B) $72.85 
C) $81.60 
D) $51.27

Quizplus · Accepted Answer

The Answer of Kirgan, Incorporated, manufactures a product with the following costs:  The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 82,000 units per year.The company has invested $230,000 in this product and expects a return on investment of 16%.The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)
A) $64.90 
B) $72.85 
C) $81.60 
D) $51.27

Kirgan, Incorporated, Manufactures a Product with the Following Costs