The Following Information Is Available on Browning Inc The Company Uses the Absorption Costing Approach to Cost-Plus Pricing

question 13

Multiple Choice

The following information is available on Browning Inc.'s Product A: $\begin{array}{lr}\text {Number of units sold each year. }&20,000 \\\text { Selling price per unit}&\$ 96 \\\text { Unit product cost.}&\$ 60 \\\text {Investment in Product A }&\$ 500,000 \\\text {Required return on investment. }&16 \%\end{array}$ The company uses the absorption costing approach to cost-plus pricing described in the text. Based on these data, the total selling and administrative expenses each year are:

• A)$720,000
• B)$480,000
• C)$640,000
• D)$400,000

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Definitions:

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A chronic inflammatory bowel disease that affects the lining of the digestive tract, leading to severe diarrhea, pain, fatigue, and malnutrition.

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Signs and symptoms relating to the digestive system, such as nausea, vomiting, diarrhea, and abdominal pain.

Physical Functioning

The ability to perform activities of daily living, including ambulation, feeding, dressing, and engaging in recreational activities.

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A characteristic of adolescent thinking leading to an over-focus on self and a feeling of being unique and invulnerable.