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

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Definitions:

Teratogens

Substances or elements that lead to fetal or embryonic developmental issues or congenital anomalies.

Blastocyst

A blastocyst is an early stage in the development of an embryo, consisting of a sphere of cells surrounding a fluid-filled cavity and the cluster of cells from which the embryo will develop.

Placenta

An organ that develops in the uterus during pregnancy, supplying oxygen and nutrients to the growing baby and removing waste products.

Critical Periods

Specific timeframes in the development of an organism when it is particularly sensitive to certain environmental stimuli, leading to irreversible outcomes.