The Gargus Company, Which Manufactures Projection Equipment, Is Ready to Introduce

question 38

Multiple Choice

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: $\begin{array}{lr}\text { Variable manufacturing costs } & \$ 270 \\\text { Applied fixed manufacturing overhead } & 135 \\\text { Variable selling and administrative costs } & 90 \\\text { Applied fixed selling and administrative costs } & 105\end{array}$ What price will the company charge if the firm uses cost-plus pricing based on total cost and a markup percentage of 30%?

• A) $180.
• B) $121.50.
• C) $780.
• D) $526.50.
• E) None of these answer choices is correct.

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Definitions:

Thenar Eminence

The muscular bulge on the palm of the hand at the base of the thumb, composed of short muscles that control thumb movements.

Cubital Fossa

The cubital fossa is the triangular area on the anterior aspect of the human arm immediately distal to the elbow; it is bordered by the brachioradialis, pronator teres muscles, and the imaginary line connecting the epicondyles of the humerus.

Temporomandibular Joint

The hinge joint connecting the lower jaw to the temporal bone of the skull, enabling movements required for chewing and speaking.

Palpated

The act of examining a part of the body by touch, especially for medical purposes to detect abnormalities.