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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. Variable Manufacturing Variable Selling and Administrative Plant-level Fixed Overhead Batch-level Fixed Overhead Fixed Selling and Administrative Total Investment in Product Line Total Costs $ 2,355,000 755,000 1,210,000 605,000 205,000 10,015,000 Expected Sales (units) 211000 If Johnson determines price using a 43% markup of full manufacturing cost, the price is: Multiple Choice $256.72 $300.22 $369.22 $358.51 $324.22
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