Kirby,Inc ,Manufactures a Product with the Following Costs: the Company

question 14

Multiple Choice

Kirby,Inc. ,manufactures 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 19,000 units per year. The company has invested $580,000 in this product and expects a return on investment of 14%.
The selling price based on the absorption costing approach would be closest to:

• A)$74.30
• B)$56.11
• C)$96.50
• D)$78.57

---

Definitions:

Disposable Income

Net income available to households after taxes and other deductions, used for spending or saving.

GDP

GDP represents the sum total of all monetary values of goods and services produced inside a nation's boundaries over a given time frame.

Trillion

A numerical value representing one thousand billion, or 10^12 in the United States and other countries using short scale numbering.

Total Savings

The aggregate amount saved by individuals, businesses, and the government, often measured over a specific time period.