The Gluten Free Company, which manufactures gluten free snack foods, is ready to introduce a new line of breakfast bars. The following data is available: $\begin{array} { | l | r | }
\hline \text { Variable manufacturing cost } & \$ 240 \
\hline \text { Variable selling and administrative cost } & 20 \
\hline \text { Applied fixed manufacturing cost } & 80 \
\hline \text { Allocated fixed selling and administrative cost } & 65 \
\hline
\end{array}$ What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 200%?

Question

The Gluten Free Company, which manufactures gluten free snack foods, is ready to introduce a new line of breakfast bars. The following data is available: $\begin{array} { | l | r | } 
\hline \text { Variable manufacturing cost } & \$ 240 \
\hline \text { Variable selling and administrative cost } & 20 \
\hline \text { Applied fixed manufacturing cost } & 80 \
\hline \text { Allocated fixed selling and administrative cost } & 65 \
\hline
\end{array}$ What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 200%?

Quizplus · Accepted Answer

The Answer of The Gluten Free Company, which manufactures gluten free snack foods, is ready to introduce a new line of breakfast bars. The following data is available: $\begin{array} { | l | r | } 
\hline \text { Variable manufacturing cost } & \$ 240 \
\hline \text { Variable selling and administrative cost } & 20 \
\hline \text { Applied fixed manufacturing cost } & 80 \
\hline \text { Allocated fixed selling and administrative cost } & 65 \
\hline
\end{array}$ What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 200%?

The Gluten Free Company, Which Manufactures Gluten Free Snack Foods