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

question 68

Multiple Choice

The following information is available on Browning Inc.'s Product A:
$\begin{array}{|l|r|}\hline \text { Number of Units Sold Each Year } & 20,000 \\\hline \text { Selling Price per Unit } & \$ 96 \\\hline \text { Unit Product Cost } & \$ 60 \\\hline \text { Investment in Product A } & \$ 500,000 \\\hline \text { Required Return on Investment } & 16 \% \\\hline\end{array}$
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) $400,000.
• B) $480,000.
• C) $640,000.
• D) $720,000.

---

Definitions:

Self-Actualization

Materializing or achieving one's natural capabilities and potential, seen as a fundamental drive or essential requirement in everyone.

Economic Security

Refers to the condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Arousal Theory

A theory of motivation that posits individuals seek to maintain an optimal level of arousal, seeking stimulation when it is low and calm when it is high.

Recreational Skydivers

Individuals who participate in skydiving for enjoyment and leisure, rather than for professional or competitive reasons.