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 absorption manufacturing cost and a markup percentage of 140%?

A) $320.
B) $576.
C) $768.
D) $788.
E) $972.