The Management of Kizer Corporation Would Like to Set the Selling

question 58

Multiple Choice

The management of Kizer 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 8, 000 units of the new product annually.The new product would require an investment of $1, 580, 000 and has a required return on investment of 10%. The unit target selling price using the absorption costing approach is closest to:

• A)$105.75
• B)$83.33
• C)$121.50
• D)$86.00

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Definitions:

Vertical

In a context it can refer to the direction that is perpendicular to the horizon; in business, it could refer to practices or arrangements involving different levels of the supply chain.

High-Achieving Women

Women who have attained significant success or accomplishments, particularly in their careers or academic pursuits.

Financially Independent

The state of having sufficient personal wealth to live, without having to work actively for basic necessities.

Sexism

Prejudice or discrimination based on a person's sex or gender, often manifesting in unequal treatment or opportunities.