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 total cost and a markup percentage of 30%? Multiple Choice None of these answer choices is correct. $121.50. $180. $780. $526.50. Next Visit question mapQuestion 34 of 50 Total

Question

Ana Bright

Business

17 November, 02:43

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 total cost and a markup percentage of 30%? Multiple Choice None of these answer choices is correct. $121.50. $180. $780. $526.50. Next Visit question mapQuestion 34 of 50 Total

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Answers (1)

Know the Answer?

Simone Smith · Answer 1

The correct answer is $780.

Explanation:

As per the data given in the question,

Markup percentage = 30%

Total cost = $270 + $135 + $90 + $105

= $600

We can calculate the price by using following formula:

Price = Total cost + (Total cost * markup %)

by putting the value, we get

Price = $600 + ($600 * 30%)

= $600 + $180

= $780.

Hence, the price that company charge will be $780.