Kirgan,Inc.,manufactures a Product with the Following Costs

Multiple Choice

Kirgan,Inc.,manufactures a product with the following costs:
The company uses the absorption costing approach to cost-plus pricing described in the text.The pricing calculations are based on budgeted production and sales of 57,000 units per year.
The company has invested $140,000 in this product and expects a return on investment of 13%.
The selling price based on the absorption costing approach would be closest to:

A) $77.42
B) $99.65
C) $77.10
D) $61.13