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Kircher, Inc

Question 64

Multiple Choice

Kircher, Inc. , manufactures a product with the following costs: Kircher, 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 81, 000 units per year. The company has invested $220, 000 in this product and expects a return on investment of 15%. The selling price based on the absorption costing approach would be closest to: A) $71.90 B) $72.31 C) $53.29 D) $93.67 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 81, 000 units per year. The company has invested $220, 000 in this product and expects a return on investment of 15%.
The selling price based on the absorption costing approach would be closest to:


A) $71.90
B) $72.31
C) $53.29
D) $93.67

Correct Answer:

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