Eckert Company uses the absorption costing approach to cost-plus pricing to set prices for its products. The following information will be used for questions 11 and 12 Based on budgeted sales of 18,000 units next year, the unit product cost of a particular product is $60.40. The company's selling, general, and administrative expenses for this product are budgeted to be $370,800 in total for the year. The company has invested $260,00 in this product and expects a return on investment of 11%. The target selling price based on the absorption costing approach for this product would be closest to which of the following? $67.04. $82.59. O $110.76. $81.00.

Eckert Company uses the absorption costing approach to cost-plus pricing to set prices for its products. The following information will be used for questions 11 and 12 Based on budgeted sales of 18,000 units next year, the unit product cost of a particular product is $60.40. The company's selling, general, and administrative expenses for this product are budgeted to be $370,800 in total for the year. The company has invested $260,00 in this product and expects a return on investment of 11%. The target selling price based on the absorption costing approach for this product would be closest to which of the following? $67.04. $82.59. O $110.76. $81.00.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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