Use This Information for Mallard Corporation to Answer the Questions

question 20

Multiple Choice

Use this information for Mallard Corporation to answer the questions that follow.
​
Mallard Corporation uses the product cost concept of product pricing. Below is the cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
​
$$\begin{array} { l r } \text { Fixed factory overhead cost } & \$ 82,000 \\\text { Fixed selling and administrative costs } & 45,000 \\\text { Variable direct materials cost per unit } & 5.50 \\\text { Variable direct labor cost per unit } & 7.65 \\\text { Variable factory overhead cost per unit } & 2.25 \\\text { Variable selling and administrative cost per unit } & 0.90\end{array}$$
-The cost per unit for the production of the company's product is

• A) $13.15
• B) $17.22
• C) $15.40
• D) $15.75

---

Definitions:

Connotative Words

Words that carry beyond their literal meaning, evoking emotions, attitudes, or additional meanings.

Denotative Words

Denotative words hold the direct, literal meaning of terms as opposed to their connotative or implied meanings.

Qualitative Judgment

The assessment or evaluation of something based on its qualities rather than quantitative data.

Connotative Meaning

The implied or associated emotional or cultural value attached to a word or phrase, beyond its explicit dictionary definition, affecting interpretation and response.