Diedrich Corporation makes a product with the following costs: Per UnitPer YearDirect materials$20.80 Direct labor$15.20 Variable manufacturing overhead$1.30 Fixed manufacturing overhead $1,252,900 Variable selling and administrative expenses$4.20 Fixed selling and administrative expenses $1,581,200 ?The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 67,000 units per year.The company has invested $420,000 in this product and expects a return on investment of 12%.Direct labor is a variable cost in this company.?The selling price based on the absorption costing approach is closest to:
A. $56.32
B. $83.80
C. $84.56
D. $126.53
Answer: C
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a. 53.3 percent. b. 22.2 percent. c. 66.7 percent. d. 38.1 percent.
On December 31 . 2014, Omar Corporation's current liabilities total $60,000 and long-term liabilities total $160,000 . Working capital at December 31 . 2014, is equal to $90,000 . If Omar Corporation's debt-to-equity ratio is .40 to 1 . total long-term assets must equal
a. $620,000. b. $770,000. c. $550,000. d. $680,000.
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What will be an ideal response?