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1. Kircher, Inc. manufactures a product with the following costs: Per unit Per year Direct materials $24.90 Direct labour 13.90 Variable manufacturing overhead 2.10 Fixed
1. Kircher, Inc. manufactures a product with the following costs: Per unit Per year Direct materials $24.90 Direct labour 13.90 Variable manufacturing overhead 2.10 Fixed manufacturing overhead $1,182,600 Variable SG&A expenses 2.00 Fixed SG&A expenses 1,166,400 The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 81,000 units per year. The company has invested $220,000 in this product and expects a return on investment of 15%. The target selling price based on the absorption costing approach would be closest to which of the following? A) $72.31. $70.90. C) $53.29. $83.67
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