Kircher, Inc

question 64

Multiple Choice

Kircher, Inc. , manufactures a product with the following costs: The company uses the absorption costing approach to cost-plus pricing described in the text.The pricing calculations are based on budgeted production and sales of 81, 000 units per year. The company has invested $220, 000 in this product and expects a return on investment of 15%.
The selling price based on the absorption costing approach would be closest to:

• A)$71.90
• B)$72.31
• C)$53.29
• D)$93.67

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Definitions:

Transducing Physical Signals

The process of converting physical signals, such as light or sound waves, into electrical or neural signals that can be interpreted by the brain.

Taste

One of the five traditional senses; it's the sensation produced when a substance in the mouth reacts chemically with taste receptor cells located on taste buds.

Smell

The sensory perception of odorants by the olfactory system, enabling the detection and identification of chemicals in the environment.

Olfaction

The sense of smell, a chemical sensing system processing odors.