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 30%?

a. 180

B. 121.50

C. 780

D. 526.50

E. Some other amount

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