The following data pertain to Kluver Business Solutions Inc.: variable manufacturing cost $60; variable selling and administrative cost $30; applied fixed manufacturing cost $30; allocated fixed selling and administrative cost $12. What price will the company charge if the firm uses cost-plus pricing based on absorption manufacturing cost and a markup percentage of 80%?
A)$90.
B)$108.
C)$135.
D)$162.
E)$216.

Question

Quizplus · Accepted Answer

The absorption manufacturing cost includes both variable and fixed manufacturing costs: $60 (variable) + $30 (fixed) = $90. With a markup of 80%, the price is $90 + (0.80 * $90) = $162.

The Following Data Pertain to Kluver Business Solutions Inc