The Following Information Is Available on Bruder Inc The Company Uses the Absorption Costing Approach to Cost-Plus Pricing

question 7

Multiple Choice

The following information is available on Bruder Inc.'s Product A:
$\begin{array}{|l|r|}\hline \text { Number of Units Sold Each Year } & 10,000 \\\hline \text { Selling Price per Unit } & \$ 80 \\\hline \text { Unit Product Cost } & \$ 50 \\\hline \text { Investment in Product A } & \$ 400,000 \\\hline \text { Required Return on Investment } & 15 \% \\\hline\end{array}$
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) $140,000.
• B) $200,000.
• C) $240,000.
• D) $300,000.

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Definitions:

Business Supply Spending

Expenditure by businesses on the procurement of goods and services necessary for their operations, including office supplies, machinery, and software.

Core Corporate Functions

Essential activities or operations critical to the management and sustained success of a corporation, such as finance, human resources, and marketing.

Suppliers

Individuals or companies that provide goods or services to another entity, typically within a supply chain.

Blockchain

A distributed ledger technology that allows data to be stored in a series of interconnected blocks, enhancing security and transparency.