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

question 84

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

Understand the concept of interest rates and how they affect financial decisions.

Calculate the present value and future value of single payments.

Analyze different investment or savings options based on their present or future values.

Apply the concept of the time value of money to personal and business financial decisions.

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Definitions:

Cerebral Cortex

The outermost layer of the brain, responsible for complex cognitive behaviors, including thought, memory, and decision-making.

Thalamus

A part of the brain that acts as a principal relay station for sensory information, transmitting it to the cerebral cortex.

Olfaction

The sense of smell, which is the process of detecting and identifying airborne substances.

Unmyelinated C Fibres

Nerve fibers lacking a myelin sheath, involved in transmitting slow-conducting pain and temperature sensations.