The following information is available on Browning Inc.'s Product A: $\begin{array}{lr}
\text {Number of units sold each year. }&20,000 \
\text { Selling price per unit}&\$ 96 \
\text { Unit product cost.}&\$ 60 \
\text {Investment in Product A }&\$ 500,000 \
\text {Required return on investment. }&16 \%
\end{array}$ 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)$720,000
B)$480,000
C)$640,000
D)$400,000

Question

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The Answer of The following information is available on Browning Inc.'s Product A: $\begin{array}{lr}
\text {Number of units sold each year. }&20,000 \
\text { Selling price per unit}&\$ 96 \
\text { Unit product cost.}&\$ 60 \
\text {Investment in Product A }&\$ 500,000 \
\text {Required return on investment. }&16 \%
\end{array}$ 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)$720,000
B)$480,000
C)$640,000
D)$400,000

The Following Information Is Available on Browning Inc The Company Uses the Absorption Costing Approach to Cost-Plus Pricing