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

question 73

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 return on life cycle costs of 30%, the price is:

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

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Definitions:

Upward Appeal

A tactic in which an employee tries to gain support or persuade someone by appealing to a higher authority within the organization.

Coalition Formation

The process by which individuals or groups come together to form an alliance, typically for a specific purpose or to achieve a common goal.

Coping With Uncertainty

Strategies and approaches used by individuals and organizations to manage and reduce the anxiety and risk associated with unknown future events.

Organizational Settings

The specific environmental and situational context within which organizations operate, influencing their structure, behavior, and interactions with external entities.