Johnson marine has the following costs and expected sales for the coming year. johnson is considering a number of different methods to determine the price of its product. total costs variable manufacturing $ 2,350,000 variable selling and administrative 750,000 plant-level fixed overhead 1,200,000 fixed selling and administrative 600,000 batch-level fixed overhead 200,000 total investment in product line 10,000,000 expected sales (units) 20,000 if johnson determines price using a desired gross margin percentage of 50%, the price is:

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.