For long-run pricing of the coffee tables, what price will MOST likely be used by Berryman?

ACCOUNTING

Multiple Choice

Berryman Products manufactures coffee tables. Berryman 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:



Output units 30,000 tables

Machine-hours 8,000 hours

Direct manufacturing labor-hours 10,000 hours



Direct materials per unit $50

Direct manufacturing labor per hour $6

Variable manufacturing overhead costs $161,250

Fixed manufacturing overhead costs $600,000

Product and process design costs $450,000

Marketing and distribution costs $562,500



For long-run pricing of the coffee tables, what price will MOST likely be used by Berryman?

a. $67.38

b. $80.85

c. $111.13

d. $133.35

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