Question
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
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