Kirgan, Inc

question 84

Multiple Choice

Kirgan, Inc., manufactures a product with the following costs: The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 57,000 units per year.
The company has invested $140,000 in this product and expects a return on investment of 13%.
The selling price based on the absorption costing approach would be closest to:

• A) $77.42
• B) $99.65
• C) $77.10
• D) $61.13

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