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ohnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price
ohnson 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 | $ 2,360,000 |
Variable Selling and Administrative | 760,000 |
Plant-level Fixed Overhead | 1,220,000 |
Fixed Selling and Administrative | 610,000 |
Batch-level Fixed Overhead | 210,000 |
Total Investment in Product Line | 10,030,000 |
Expected Sales (units) | 20,000 |
If Johnson determines price so as to receive a desired return on assets of 15%, the price is:
Multiple Choice
$309.23
$367.52
$265.73
$378.23
$333.23
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