Mahboud,Inc

question 36

Multiple Choice

Mahboud,Inc. ,uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products.Based on budgeted sales of 64,000 units next year,the unit product cost of a particular product is $84.20.The company's selling and administrative expenses for this product are budgeted to be $1,292,800 in total for the year.The company has invested $560,000 in this product and expects a return on investment of 13%. The selling price for this product based on the absorption costing approach would be closest to:

• A)$95.15
• B)$130.86
• C)$104.40
• D)$105.54

Grasp the accrual basis of accounting and its impact on financial reporting and management.

Analyze financial health through liquidity, profitability, asset management, and long-term solvency assessments.

Recognize the development and importance of financial and management policies for organizational governance.

Understand the application and effects of zero-based budgeting on organizational financial planning.

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Definitions:

Corporate Social Responsibility

A business model that incorporates self-regulation into a company's business model to positively impact society socially, economically, and environmentally.

Corporate Profitability

A measure of an organization's efficiency in generating profit from its operations.

Social Activity

Participation in events or interactions with others that provide enjoyment, leisure, or cultural experiences, often conducive to fostering relationships.

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.