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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
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 $2,350.000 Variable Selling and Administrative 750,000 Plant-level Fixed Overhead 1,200,0001 Fixed Selling and Administrative 600.000 Batch-level Fixed Overhead 200.000 Total Investment in Product Line 10,000,000 Expected Sales (units) 20.000 If Johnson determines price using a desired return on life cycle costs of 3095, the price is: $262.50 $306.00 $375.00 $364.29 $330.00
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