The following information is available on Bruder Inc.'s Product A: Number of units sold each year 10,000 Selling price per unit$80 Unit product cost$50 Investment in Product A$400,000 Required return on investment 15% The company uses the absorption costing approach to cost-plus pricing described in the text. Based on these data, the total selling and administrative expenses each year are:
A. $240,000
B. $140,000
C. $200,000
D. $300,000
Answer: A
You might also like to view...
Open economies have
a. less competition. b. less firm turnover. c. a more stable labor market. d. more firms entering the market.
Which of the following is not a common transaction affecting stockholders' equity?
a. The purchase of treasury stock. b. The declaration and payment of dividends. c. The exercises and expirations of stock options and warrants. d. Bond amortization.
Which of the following statements is true of the use of computer software scheduling systems?
A. The burden of unpredictable scheduling of sales associates is eliminated. B. The system benefits the employees but has an adverse effect on retailers and customers. C. The software analyses sales, transactions, and customer traffic for each time period. D. The software often recommends the use of full-time employees. E. The software often recommends the use of regular and predictable work hours.
Smaller companies may lack the skills and resources needed to serve larger segments
Indicate whether the statement is true or false