Reference no: EM132873098
Question - Johnson Marine has the following costs and expected sales from the coming year. Johnson is considering a number of different methods to determine the price of its product.
Variable Manufacturing 2,350,000
Variable Selling and Administrative 750,000
Plant-level Fixed Overhead: 1,200,000
Fixed Selling and Administrative 600,000
Batch-level Fixed Overhead 200,000
Total Investment in Product Line 10,000,000
Expected Sales (units) 20,000
Required - If Johnson determines prices so as to receive a desired return on assets of 15%, determine the price?
a) $262.50
b) $375.00
c) $364.29
d) $306.00
e) $330.00
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