Johnson Marine Has the Following Costs and Expected Sales for the Coming

question 34

Multiple Choice

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. $\begin{array}{lr}&\text { Total Costs }\\\text { Variable Manufacturing } & \$ 2,350,000 \\\text { Variable Selling and Administrative } & 750,000 \\\text { Plant-level Fixed Overhead } & 1,200,000 \\\text { Fixed Selling and Administrative } & 600,000 \\\text { Batch-level Fixed Overhead } & 200,000 \\\text { Total Investment in Product Line } & 10,000,000 \\\text { Expected Sales (units) } & 20,000\end{array}$ If Johnson determines price using a desired gross margin percentage of 50%, the price is:

• A) $262.50
• B) $306.00
• C) $375.00
• D) $364.29
• E) $330.00

---

Definitions:

Secondary Data

Information that was collected previously for another purpose but can be used for a new research question or issue.

Government Publications

Documentation and informational material published or commissioned by governmental bodies.

Primary Data

Primary data is original data that is collected directly by the researcher specifically for the purpose of their study, through methods like surveys, interviews, or experiments.

Observational Data

Information collected through directly witnessing or recording physical occurrences and behaviors, without manipulating the environment or subjects.