Mercer Corporation Estimates That an Investment of $650,000 Would Be

Multiple Choice

Mercer Corporation estimates that an investment of $650,000 would be necessary to produce and sell 60,000 units of a new product each year. Other costs associated with the new product would be: The company requires a 25% return on the investment in all products. The company uses the absorption costing approach costing to pricing as described in the text.
The selling price would be closest to:

A) $28.71
B) $26.50
C) $22.00
D) $32.67