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Cost-plus pricing

The Sterling Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available:
Variable Manufacturing Cost: $200
Applied Fixed Manufacturing Cost: $90
Variable Selling and Administrative Cost: $60
Allocated Fixed Selling and Administrative Cost $75

What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 220% ?

Solution Summary

The solution explains how to determine the selling price based on cost-plus pricing

$2.19