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30 June, 18:42

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 total cost and a markup percentage of 30%? Multiple Choice None of these answer choices is correct. $121.50. $180. $780. $526.50. Next Visit question mapQuestion 34 of 50 Total

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  1. 30 June, 21:10
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    The correct answer is $780.

    Explanation:

    As per the data given in the question,

    Markup percentage = 30%

    Total cost = $270 + $135 + $90 + $105

    = $600

    We can calculate the price by using following formula:

    Price = Total cost + (Total cost * markup %)

    by putting the value, we get

    Price = $600 + ($600 * 30%)

    = $600 + $180

    = $780.

    Hence, the price that company charge will be $780.
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