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Business, 08.03.2021 20:10 helpme6191

Magney, 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 28,000 units next year, the unit product cost of a particular product is $62.50. The company's selling and administrative expenses for this product are budgeted to be $826,000 in total for the year. The company has invested $540,000 in this product and expects a return on investment of 11%. The selling price for this product based on the absorption costing approach would be closest to: a. $88.21
b. $121.44
c. $90.18
d. $69.93

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