Kircher,Inc A)$7190
B)$72

Kircher,Inc. ,manufactures a product with the following costs: 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 81,000 units per year.
The company has invested $220,000 in this product and expects a return on investment of 15%.
The selling price based on the absorption costing approach would be closest to:
$\begin{array}{c}\begin{array}{lll}\\ \text {Direct materials....................................................}\\ \text {Direct labor...........................................................}\\ \text {Variable manufacturing overhead..........................}\\ \text {Fixed manufacturing overhead...............................}\\ \text {Variable selling and administrative expenses..........}\\ \text {Fixed selling and administrative expenses..............}\end{array}\begin{array}{rr}\text { Per Unit } & \text { Per Year } \\\$24.90 & \\\$ 13.90 & \\\$ 2.10 & \\& \$ 1,182,600 \\\$2.00 & \\& \$ 1,166,400\end{array}\end{array}$

A) $71.90
B) $72.31
C) $53.29
D) $93.67