Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:
Direct manufacturing labor-hours | 10,000 | hours |
Direct materials per unit | $50 | |
Direct manufacturing labor per hour | $12.00 | |
Variable manufacturing overhead costs | $322,500 | |
Fixed manufacturing overhead costs | $1,200,000 | |
Product and process design costs | $600,000 | |
Marketing and distribution costs | $1,290,000 |
For long-run pricing of the coffee tables, what price will most likely be used by Grounded Coffee?
◦ $64.75
◦ $103.00
◦ $167.75
◦ $201.30