Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product. Total Costs Variable Manufacturing $ 2,351,000 Variable Selling and Administrative 751,000 Plant-level Fixed Overhead 1,202,000 Fixed Selling and Administrative 601,000 Batch-level Fixed Overhead 201,000 Total Investment in Product Line 10,003,000 Expected Sales (units) 20,000 If Johnson determines price using a desired return on life cycle costs of 32%, the price is: Multiple Choice $273.65 $317.15 $386.15 $375.44 $341.15
Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product. Total Costs Variable Manufacturing $ 2,351,000 Variable Selling and Administrative 751,000 Plant-level Fixed Overhead 1,202,000 Fixed Selling and Administrative 601,000 Batch-level Fixed Overhead 201,000 Total Investment in Product Line 10,003,000 Expected Sales (units) 20,000 If Johnson determines price using a desired return on life cycle costs of 32%, the price is: Multiple Choice $273.65 $317.15 $386.15 $375.44 $341.15
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...
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Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of its product.
| Total Costs | |
|---|---|
| Variable Manufacturing | $ 2,351,000 |
| Variable Selling and Administrative | 751,000 |
| Plant-level Fixed Overhead | 1,202,000 |
| Fixed Selling and Administrative | 601,000 |
| Batch-level Fixed Overhead | 201,000 |
| Total Investment in Product Line | 10,003,000 |
| Expected Sales (units) | 20,000 |
If Johnson determines price using a desired return on life cycle costs of 32%, the price is:
Multiple Choice
-
$273.65
-
$317.15
-
$386.15
-
$375.44
-
$341.15
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