Kirgan, Incorporated, Manufactures a Product with the Following Costs

question 41

Multiple Choice

Kirgan, Incorporated, 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 82,000 units per year.The company has invested $230,000 in this product and expects a return on investment of 16%.The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)

• A) $64.90
• B) $72.85
• C) $81.60
• D) $51.27

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Definitions:

Ideal Labor Market

An ideal labor market is a theoretical construct where there is perfect competition, equal access to information, and no barriers to entry or exit, leading to efficient employment outcomes.

Workers Without Jobs

Individuals who are actively seeking employment but are unable to find work.

Structural Unemployment

Unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one.

U-5 Measure

The U-5 Measure is a broader definition of unemployment than the standard, including not only those actively seeking work but also discouraged workers and others marginally attached to the labor force.