Kircher, Inc. manufactures a product with the following costs: Per year Per unit $24.90 13.90 birect...

 

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Kircher, Inc. manufactures a product with the following costs: Per year Per unit $24.90 13.90 birect materials birect labour Variable Manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed SG&A expenses 2.18 $1,182,6ee 2.00 1,166,400 The company uses the absorption costing approach to cost-plus pricing. 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 target selling price based on the absorption costing approach would be closest to which of the following? Multiple Choice $53.29 $7190 $72.31 59367 Kircher, Inc. manufactures a product with the following costs: Per year Per unit $24.90 13.90 birect materials birect labour Variable Manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed SG&A expenses 2.18 $1,182,6ee 2.00 1,166,400 The company uses the absorption costing approach to cost-plus pricing. 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 target selling price based on the absorption costing approach would be closest to which of the following? Multiple Choice $53.29 $7190 $72.31 59367

Answer rating: 100% (QA)

Answer 1 Selling SG A expenses 2 x 81000 1166400 1328400 Direct material 2490 ... View the full answer