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:

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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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