The Razooks Company, Which Manufactures Office Equipment, Is Ready to Introduce

Multiple Choice

The Razooks Company, which manufactures office equipment, is ready to introduce a new line of portable copiers. The following copier data are available: $$\begin{array} { l r } \text { Variable manufacturing cost } & \$ 180 \\\text { Applied fixed manufacturing cost } & 90 \\\text { Variable selling and administrative cost } & 60 \\\text { Allocated fixed selling and administrative cost } & 75\end{array}$$ What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a markup percentage of 120%?

A) $420.
B) $459.
C) $594.
D) $672.
E) None of the other answers are correct.