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