The Gargus Company, which manufactures projection equipment, is ready to introdu
ID: 1100426 • Letter: T
Question
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 variable manufacturing cost and a markup percentage of 30%?
a. 180
B. 121.50
C. 780
D. 526.50
E. Some other amount
Explanation / Answer
option C
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