(Appendix 12A)The Following Information Is Available on Browning Inc The Company Uses the Absorption Costing Approach to Cost-Plus Pricing

question 11

Multiple Choice

(Appendix 12A) The following information is available on Browning Inc.'s Product A:

$\begin{array}{lccc}\text { Number of Units Sold Each Year } & 20,000 \\\text { Selling Price per Unit } & \$ 96 \\\text { Unit Product Cost } & \$ 60 \\\text { Investment in Product A } & \$ 500,000 \\\text { Required Return on Investment } & 16 \%\end{array}$

The company uses the absorption costing approach to cost-plus pricing.Based on these data,what are the total selling,general,and administrative expenses each year?

• A) $400,000.
• B) $480,000.
• C) $640,000.
• D) $720,000.

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Definitions:

Environmental Uncertainty

A lack of predictability or stability in the external conditions that can affect an organization's performance.

Resource Dependence

The dependency of organizations on environmental inputs, such as capital, raw materials, and human resources as well as outputs such as customers.

Environmental Uncertainty

The unpredictability that an organization faces due to external factors beyond its control, such as economic conditions or technological changes.

Dynamic Environment

A situation or place characterized by constant change, activity, or progress, which can affect individuals, businesses, or ecosystems.