Magney, Inc

question 412

Multiple Choice

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 42,000 units next year, the unit product cost of a particular product is $61.90. The company's selling and administrative expenses for this product are budgeted to be $818,800 in total for the year. The company has invested $480,000 in this product and expects a return on investment of 10%.The selling price for this product based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)

• A) $82.54
• B) $120.37
• C) $68.09
• D) $81.40

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Definitions:

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Topgrading Interview

A comprehensive interview technique used by employers to identify the highest-performing candidates by evaluating their work history and experience in detail.

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