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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. Fixed Selling and Administrative Total Costs $ 2,350,500 750,500 1,201,000 600,500 Variable Manufacturing Variable Selling and Administrative Plant-level Fixed Overhead Batch-level Fixed Overhead Total Investment in Product Line Expected Sales (units) 20,000 If Johnson determines price using a desired gross margin percentage of 51%, the price is: 200,500 10,001,500 Multiple Choice $270.36 $313.86 $382.86 $372.15 $337.86
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