Multiple Choice
Magney,Inc.,uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products.Based on budgeted sales of 84,000 units next year,the unit product cost of a particular product is $40.80.The company's selling and administrative expenses for this product are budgeted to be $1,705,200 in total for the year.The company has invested $300,000 in this product and expects a return on investment of 14%. The selling price for this product based on the absorption costing approach would be closest to:
A) $92.25
B) $61.60
C) $46.51
D) $61.10
Correct Answer:
Verified
Correct Answer:
Verified
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