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Kirgan, Inc., manufactures a product with the following costs: Per Unit Per Year Direct materials...

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Accounting

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Kirgan, Inc., manufactures a product with the following costs: Per Unit Per Year Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed sel1ing and administrative expenses $25.50 $14.50 $ 2.70 47 $1,322,400 2.60 $1,296,000 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 87,000 units per year The company has invested $280,000 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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