Seamons Corporation has the following information available on Product K: Number of units sold each year 60,000 Unit product cost$40 Investment in Product K$600,000 Required return on investment 18%?The company uses the absorption costing approach to cost-plus pricing described in the text and a 40% markup. Based on these data, the company's total selling and administrative expenses associated with Product K each year are:
A. $852,000
B. $528,000
C. $132,000
D. $172,800
Answer: A
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