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What price will the company charge

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Reference no: EM132528724

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

Question 1: What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 200%?

A. $810.
B. $450.
C. $540.
D. $675.
E. Some other amount.

Question 2: What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 150%?

A. $405.00.
B. $540.00.
C. $675.
D. $900.00.
E. Some other amount.

Reference no: EM132528724

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