The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model:

Variable manufacturing costs	$	270
Applied fixed manufacturing overhead		135
Variable selling and administrative costs		90
Applied fixed selling and administrative costs		105

What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 150%?

Multiple Choice

• $675.

• $405.00.

• $900.00.

• None of these answer choices is correct.

• $540.00.