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Dieckman Company Makes a Product with the Following Costs

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Dieckman Company makes a product with the following costs: Dieckman Company makes 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 71,000 units per year. The company has invested $360,000 in this product and expects a return on investment of 13%. Direct labor is a variable cost in this company.  -If every 10% increase in price leads to a 12% decrease in quantity sold,the profit-maximizing price is closest to: A) $56.40 B) $130.10 C) $144.16 D) $134.03 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 71,000 units per year.
The company has invested $360,000 in this product and expects a return on investment of 13%.
Direct labor is a variable cost in this company.

-If every 10% increase in price leads to a 12% decrease in quantity sold,the profit-maximizing price is closest to:


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