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 variable cost and a markup percentage of 120%?
A) $420.
B) $459.
C) $594.
D) $672.
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 variable cost and a markup percentage of 120%?
A) $420. 
B) $459. 
C) $594. 
D) $672. 
E) None of the answers is correct.

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the total variable cost. If the total variable cost is $270, a 120% markup would be $270 * 1.2 = $324. Adding this to the original cost gives $270 + $324 = $594.

Use the Following Information to Answer the Following Questions