The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors.
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Question:
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 - 270
Applied fixed manufacturing overhead - 135
Variable selling and administrative costs - 90
Applied fixed selling and administrative costs - 105
What price will the company charge if the firm uses cost=plus pricing based on variable manufacturing cost and a markup percentage of 200%?
a. 810
b. 450
c. 540
d. 675
e. Some other amount
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