The Management of Matsuura Corporation Would Like to Set the Selling

question 53

Multiple Choice

The management of Matsuura 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 1,000 units of the new product annually. The new product would require an investment of $254,000 and has a required return on investment of 10%.
-The absorption costing unit product cost is:

• A) $90
• B) $97
• C) $67
• D) $69

---

Definitions:

Restrain Trade

Practices that restrict or limit competition or trade in the marketplace, often deemed illegal or regulated by law.

Rule Of Reason

A legal doctrine used to evaluate whether a particular business practice is anticompetitive under antitrust laws, focusing on its purpose, nature, and effect.

Anticompetitive Effects

Negative impacts on competition within a market, often resulting from monopolistic practices or mergers.

Sherman Act

An 1890 U.S. federal statue that outlaws monopolistic business practices and promotes competition.