Kirgan, Inc., 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 57,000 units per year.The company has invested $140,000 in this product and expects a return on investment of 13%.The selling price based on the absorption costing approach would be closest to:
A) $77.42
B) $99.65
C) $77.10
D) $61.13

Question

Kirgan, Inc., 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 57,000 units per year.The company has invested $140,000 in this product and expects a return on investment of 13%.The selling price based on the absorption costing approach would be closest to:
A) $77.42 
B) $99.65 
C) $77.10 
D) $61.13

Quizplus · Accepted Answer

The Answer of Kirgan, Inc., 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 57,000 units per year.The company has invested $140,000 in this product and expects a return on investment of 13%.The selling price based on the absorption costing approach would be closest to:
A) $77.42 
B) $99.65 
C) $77.10 
D) $61.13