Mahboud,Inc

Multiple Choice

Mahboud,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 64,000 units next year,the unit product cost of a particular product is $84.20.The company's selling and administrative expenses for this product are budgeted to be $1,292,800 in total for the year.The company has invested $560,000 in this product and expects a return on investment of 13%. The selling price for this product based on the absorption costing approach would be closest to:

A) $95.15
B) $130.86
C) $104.40
D) $105.54