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:$\begin{array}{lr}
\text { Variable manufacturing costs } & \mathrm{S} \
\text { Applied fixed manufacturing overhead } & 135 \
\text { Variable selling and administrative costs } & 90 \
\text { Applied fixed selling and administrative costs } & 105
\end{array}$What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 150%?
A) $405.00.
B) $540.00.
C) $675.
D) $900.00.
E) None of these answer choices is correct.

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Quizplus · Accepted Answer

The Answer of 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:$\begin{array}{lr}
\text { Variable manufacturing costs } & \mathrm{S} \
\text { Applied fixed manufacturing overhead } & 135 \
\text { Variable selling and administrative costs } & 90 \
\text { Applied fixed selling and administrative costs } & 105
\end{array}$What price will the company charge if the firm uses cost-plus pricing based on total variable cost and a markup percentage of 150%?
A) $405.00.
B) $540.00.
C) $675.
D) $900.00.
E) None of these answer choices is correct.

The Gargus Company, Which Manufactures Projection Equipment, Is Ready to Introduce