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The Following Information Is Available on Browning Inc The Company Uses the Absorption Costing Approach to Cost-Plus Pricing

Question 80

Multiple Choice

The following information is available on Browning Inc.'s Product A:
 Number of Units Sold Each Year 20,000 Selling Price per Unit $96 Unit Product Cost $60 Investment in Product A $500,000 Required Return on Investment 16%\begin{array}{|l|r|}\hline \text { Number of Units Sold Each Year } & 20,000 \\\hline \text { Selling Price per Unit } & \$ 96 \\\hline \text { Unit Product Cost } & \$ 60 \\\hline \text { Investment in Product A } & \$ 500,000 \\\hline \text { Required Return on Investment } & 16 \% \\\hline\end{array}
The company uses the absorption costing approach to cost-plus pricing.Based on these data,what are the total selling,general,and administrative expenses each year?


A) $400,000.
B) $480,000.
C) $640,000.
D) $720,000.

Correct Answer:

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