Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kirgan, Inc., manufactures a product with the following costs: Per unit Per year Direct materials........................................................................... $24.60 Direct labor................................................................................. 17.90 Variable manufacturing overhead.............................................. 4.80 Fixed manufacturing

Kirgan, Inc., manufactures a product with the following costs: Per unit Per year Direct materials........................................................................... $24.60 Direct labor................................................................................. 17.90 Variable manufacturing overhead.............................................. 4.80 Fixed manufacturing overhead................................................... $718,200 Variable SG&A expenses........................................................... 4.50 Fixed SG&A expenses............................................................... 723,900 The company uses the absorption costing approach to cost-plus pricing and budgets production and sales of 57,000 units per year. Kirgan has invested $140,000 in this product and expects an ROI of 13%. The target sales price using the absorption costing approach would be closest to: Question 15 options: $77.42 $99.65 $77.10 $61.13

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud Auditing And Forensic Accounting

Authors: Tommie W Singleton, Aaron J Singleton, G Jack Bologna, Robert J Lindquist

4th Edition

ISBN: 047056413X, 9780470564134

More Books

Students also viewed these Accounting questions

Question

Define human resource management.

Answered: 1 week ago