Mercer Corporation estimates that an Investment of $650,000 would be necessary to produce and sell 60,000 units of a new product each year. Other costs associated with the new product would be: Variable costs (per unit): Materials, labor, and overhead selling and administrative Fixed costs per year: Manufacturing overhead $360,000 Selling and administrative $ 300,000 The company requires a 25% return on the Investment in all products. The company uses the absorption costing approach costing to pricing as described in the text. The selling price would be closest to: Multiple Choice $28.71 $26.50 $22.00 $32.67 $ 12 $3

The seling price wouls be colotest ba: tan sas to 12200 13457