Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Johnson Marine has the following costs and expected sales for the coming year
Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a number of different methods to determine the price of Its product.
Total Costs Variable Manufacturing $ 2,354,000 Variable Selling and Administrative 754,000 Plant-level Fixed Overhead 1,208,000 Fixed Selling and Administrative 604,000 Batch-level Fixed Overhead 204,000 Total Investment in Product Line 10,012,000 Expected Sales (units) 20,800
If Johnson determines price using a 21% markup of life cycle cost, the price is:
Expert Solution
Computation of Price:
Price = Manufacturing Cost * (1+ Markup) / Number of Units
Here,
Manufacturing Cost = Variable manufacturing + Total selling and administrative + Total overhead
= 2354000 + (754,000+604,000) + (1,208,000+204,000)
Manufacturing Cost = $5,124,000
Price = $5,124,000*(1+21%)/20,800 = $298.08
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
