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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 $ 2,352,000 752,000 1,204,000 602,000 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 return on life cycle costs of 34%, the price is: 202,000 10,006,000 Multiple Choice $285.48 $328.98 $397.98 $387.27 $352.98
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