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

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.