Magney, 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 38,000 units next year, the unit product cost of a particular product is $61.50. The company's selling and administrative expenses for this product are budgeted to be $814,000 in total for the year. The company has invested $440,000 in this product and expects a return on investment of 11%. The selling price for this product based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)
a. $82.92
b. $68.27
c. $84.19
d. $119.55
Answers: 2
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Magney, Inc., uses the absorption costing approach to cost-plus pricing described in the text to set...
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