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$340 Applied fixed manufacturing overhead 170 Variable selling and administrative costs 125 Applied fixed selling and administrative costs 140 What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 145%? Multiple Choice $1,659.00. None of these answer choices is correct. $844.50. $1,249.50. $1,059.00.

Total absorption cost per unit = Variable manufacturing cost + Applied fixed manufacturing overhead…

Answered: The Gargus Company, which manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$	340
Applied fixed manufacturing overhead		170
Variable selling and administrative costs		125
Applied fixed selling and administrative costs		140

What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 145%?

Multiple Choice

$1,659.00.
None of these answer choices is correct.
$844.50.
$1,249.50.
$1,059.00.

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