The Gargus Company, which manufactures projection equipment, is ready to introdu

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 manufacturing costs - 270

Applied fixed manufacturing overhead - 135

Variable selling and administrative costs - 90

Applied fixed selling and administrative costs - 105

What price will the company charge if the firm uses cost plus pricing based on variable manufacturing cost and a markup percentage of 30%?

a. 180

B. 121.50

C. 780

D. 526.50

E. Some other amount

Explanation / Answer

option B

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