The Management of Store Corporation Would Like to Set the Selling

question 39

Multiple Choice

The management of Store Corporation would like to set the selling price on a new product using the absorption costing approach to cost-plus pricing. The company's accounting department has supplied the following estimates for the new product: Management plans to produce and sell 6,000 units of the new product annually. The new product would require an investment of $1,140,000 and has a required return on investment of 10%.
-The unit target selling price using the absorption costing approach is closest to:

• A)$77
• B)$116
• C)$70
• D)$96

---

Definitions:

Kinesthetic

Refers to the sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Vestibular

Relating to the inner ear system that helps control balance and eye movements.

Orientation

Awareness of oneself in relation to time, place, and identity.

Rods And Cones

Photoreceptor cells in the retina of the eye that are responsible for vision under low light conditions (rods) and color vision and detail in well-lit conditions (cones).