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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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