The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable...
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 | $ | 350 | |
| Applied fixed manufacturing overhead | 175 | ||
| Variable selling and administrative costs | 130 | ||
| Applied fixed selling and administrative costs | 145 |
What price will the company charge if the firm uses cost-plus pricing based on total cost and a markup percentage of 70%?
Homework Answers
| Price will the company charges | |
| Variable Manufacturing costs | $ 350 |
| Applied fixed manufacturing overhead | $ 175 |
| variable selling & admin expesnes | $ 130 |
| applied fixed selling & admin costs | $ 145 |
| Total cost | $ 800 |
| Add: Mark-up (800*70%) | $ 560 |
| Price | $ 1,360 |
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