Question
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
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 | $ 2,350,500 |
Variable Selling and Administrative | 750,500 |
Plant-level Fixed Overhead | 1,201,000 |
Fixed Selling and Administrative | 600,500 |
Batch-level Fixed Overhead | 200,500 |
Total Investment in Product Line | 10,001,500 |
Expected Sales (units) | 20,100 |
If Johnson determines price using a 41% markup of full manufacturing cost, the price is:
Question 12 options:
$364.99. | |
$263.20. | |
$306.70. | |
$330.70. | |
$375.70. |
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