Merced Corporation Estimates That an Investment of $600, 000 Would

Multiple Choice

Merced Corporation estimates that an investment of $600, 000 would be necessary to produce and sell 50, 000 units of a new product each year.Other costs associated with the new product would be: The company requires a 15% 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