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Business, 05.05.2020 06:27 alanrojas0142007

Kirgan, Inc., manufactures a product with the following costs: Per Unit Per Year Direct materials $ 26.50 Direct labor $ 15.50 Variable manufacturing overhead $ 3.70 Fixed manufacturing overhead $ 1,571,400 Variable selling and administrative expenses $ 3.60 Fixed selling and administrative expenses $ 1,540,000 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 97,000 units per year. The company has invested $380,000 in this product and expects a return on investment of 15%. The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)

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