Use the following information to answer the following Questions
The Pines Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:

-What price will the company charge if the firm uses cost-plus pricing based on total manufacturing cost and a markup percentage of 160%?
A) $150.
B) $384.
C) $390.
D) $624.
E) None of the answers is correct.

Question

Use the following information to answer the following Questions
The Pines Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:

-What price will the company charge if the firm uses cost-plus pricing based on total manufacturing cost and a markup percentage of 160%?
A) $150. 
B) $384. 
C) $390. 
D) $624. 
E) None of the answers is correct.

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the total manufacturing cost. If the total manufacturing cost is $240, a 160% markup would be $240 * 1.6 = $384. Adding this to the original cost gives $240 + $384 = $624.

Use the Following Information to Answer the Following Questions