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

question 4

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: $\begin{array}{lr}\text { Variable manufacturing costs } & \mathrm{S} \\\text { Applied fixed manufacturing overhead } & 135 \\\text { Variable selling and administrative costs } & 90 \\\text { Applied fixed selling and administrative costs } & 105\end{array}$ What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 110%?

• A) $445.50.
• B) $850.50.
• C) $660.
• D) $1,260.
• E) None of these answer choices is correct.

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Definitions:

Walter Cannon

A physiologist known for his work on the fight or flight response and for coining the term 'homeostasis' to describe the process of maintaining internal stability in an organism.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist known for his research on the effects of stress on the human body, introducing the concept of the General Adaptation Syndrome.

Sublimation

The process where undesirable desires or thoughts are converted into behaviors or actions that society approves of.

Repressed Drive

Unconscious desires or impulses that have been pushed down or suppressed, often due to societal norms or personal fears.