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	$	440
Applied fixed manufacturing overhead		220
Variable selling and administrative costs		175
Applied fixed selling and administrative costs		190

What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 285%?

a. $1,694.

b. $1,334.

c. $1,424.

d. $1,559.

e. None of these answer choices is correct.