Magner, Inc., uses the absorption costing approach to cost-plus pricing described in the text to set prices
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Question:
Magner, 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 35,000 units next year, the unit product cost of a particular product is $61.20. The company's selling and administrative expenses for this product are budgeted to be $810,400 in total for the year. The company has invested $410,000 in this product and expects a return on investment of 8%.
Required:
The selling price for this product based on the absorption costing approach would be closest to.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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