Kirsch,Inc

question 49

Multiple Choice

Kirsch,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 41,000 units per year. The company has invested $540,000 in this product and expects a return on investment of 13%.
The selling price based on the absorption costing approach would be closest to:

• A)$95.43
• B)$72.31
• C)$41.50
• D)$70.60

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Definitions:

Blood Calcium Levels

Blood calcium levels refer to the concentration of calcium ions in the blood, essential for healthy bones, muscular function, and blood coagulation.

Calcitonin

Hormone secreted by the thyroid gland that increases the blood calcium level.

Thyroid Gland

Large gland in the neck that produces several important hormones, including thyroxine, triiodothyronine, and calcitonin.

Iodized Salt

Salt that has been fortified with iodine, a nutrient essential for thyroid function.