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

Question 129

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: 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 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

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