The Management of Store Corporation Would Like to Set the Selling

question 39

Multiple Choice

The management of Store 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 6,000 units of the new product annually. The new product would require an investment of $1,140,000 and has a required return on investment of 10%.
-The unit target selling price using the absorption costing approach is closest to:

• A)$77
• B)$116
• C)$70
• D)$96

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Definitions:

Thought

The act or process of thinking, where ideas, memories, and considerations are processed cognitively.

Gricean Maxim

Principles proposed by philosopher H.P. Grice to ensure clear, cooperative communication, including quality, quantity, relation, and manner.

Quantity

Quantity refers to an amount or number of a material or immaterial thing not requiring a unit of measure.