Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a new product. To determine a selling price, the company has gathered the following information:           Number of units to be produced and sold each year   15,000   Unit product cost $ 30   Estimated annual selling and administrative expenses $ 68,400   Estimated investment required by the company $ 780,000   Desired return on investment (ROI)   12 %

Q: Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering…

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