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connect ACCOUNTING Exam 3 instructions i help Question 39 (of 50) sse & Exit ||

ID: 2544605 • Letter: C

Question

connect ACCOUNTING Exam 3 instructions i help Question 39 (of 50) sse & Exit || Submit Time remaining: 1:52-27 39 The Gergus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The folowing date are svailable for a proposed model: Variable manufacturing costs Applied fiked manufacturing overhead Variable selling and administrative costs Applied fixed selling and administrative costs 105 what price will the corn any charge d the firm uses cost-plus pricing based on total variable cost and a markup percentage of 150%? $270 135 90 O $405.00 O $540.00 O$675 O s90000 O None of these answer choices is correct 16

Explanation / Answer

Total variable cost=270+90=$360 Price to be charged=360+(360*150%)= $900 Option 4 is correct