The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs $ 340 Applied fixed manufacturing overhead 170 Variable selling and administrative costs 125 Applied fixed selling and administrative costs 140 What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 145%? Multiple Choice $1,659.00. None of these answer choices is correct. $844.50. $1,249.50. $1,059.00.
The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs $ 340 Applied fixed manufacturing overhead 170 Variable selling and administrative costs 125 Applied fixed selling and administrative costs 140 What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 145%? Multiple Choice $1,659.00. None of these answer choices is correct. $844.50. $1,249.50. $1,059.00.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter21: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4CMA: Bethany Company has just completed the first month of producing a new product but has not yet...
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Question
The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model:
| Variable |
$ | 340 | |
| Applied fixed manufacturing overhead | 170 | ||
| Variable selling and administrative costs | 125 | ||
| Applied fixed selling and administrative costs | 140 | ||
What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 145%?
Multiple Choice
-
$1,659.00.
-
None of these answer choices is correct.
-
$844.50.
-
$1,249.50.
-
$1,059.00.
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