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(Appendix 12A)The Following Information Is Available on Bruder Inc The Company Uses the Absorption Costing Approach to Cost-Plus Pricing

Question 7

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(Appendix 12A) The following information is available on Bruder Inc.'s Product A:

 Number of Units Sold Each Year 10,000 Selling Price per Unit $80 Unit Product Cost $50 Investment in Product A $400,000 Required Return on Investment 15%\begin{array}{lr}\text { Number of Units Sold Each Year } & 10,000 \\\text { Selling Price per Unit } & \$ 80 \\\text { Unit Product Cost } & \$ 50 \\\text { Investment in Product A } & \$ 400,000 \\\text { Required Return on Investment } & 15 \%\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) $140,000.
B) $200,000.
C) $240,000.
D) $300,000.

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