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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
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. Variable Manufacturing Variable Selling and Administrative Plant-level Fixed Overhead Fixed Selling and Administrative Batch-level Fixed Overhead Total Investment in Product Line Expected Sales (units) Total Costs $ 2,354,500 754,500 1,209,000 604,500 204,500 10,013,500 20,000 If Johnson determines price using a desired gross margin percentage of 52%, the price is:
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