Question
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 $ 2,352,500 Variable Selling and Administrative 752,500 Plant-level Fixed Overhead 1,205,000 Fixed Selling and Administrative 602,500 Batch-level Fixed Overhead 202,500 Total Investment in Product Line 10,007,500 Expected Sales (units) 20,500 If Johnson determines price using a 42% markup of full manufacturing cost, the price is: $362.24 $260.45 $303.95 $327.95 $372.95. choose best option
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