The Gluten Free Company, Which Manufactures Gluten Free Snack Foods

Multiple Choice

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 total variable cost and a markup percentage of 180%?

A) $56.
B) $260.
C) $468.
D) $728.
E) $729.