The management of Store Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product: Management plans to produce and sell 6,000 units of the new product annually. The new product would require an investment of $1,140,000 and has a required return on investment of 10%.
-The unit target selling price using the absorption costing approach is closest to:
A)$77
B)$116
C)$70
D)$96

Question

The management of Store Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product:  Management plans to produce and sell 6,000 units of the new product annually. The new product would require an investment of $1,140,000 and has a required return on investment of 10%.
-The unit target selling price using the absorption costing approach is closest to:
A)$77 
B)$116 
C)$70 
D)$96

Quizplus · Accepted Answer

The Answer of  The management of Store Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product:  Management plans to produce and sell 6,000 units of the new product annually. The new product would require an investment of $1,140,000 and has a required return on investment of 10%.
-The unit target selling price using the absorption costing approach is closest to:
A)$77 
B)$116 
C)$70 
D)$96

The Management of Store Corporation Would Like to Set the Selling