Skull Co. makes snowboards and uses the total cost method in setting product price. Its costs for
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Skull Co. makes snowboards and uses the total cost method in setting product price. Its costs for producing 10,000 units follow. The company targets a 12.5% markup on total cost.
1. Compute the total cost per unit if 10,000 units are produced.
2. Compute the dollar markup per unit.
3. Compute the selling price per unit.
Transcribed Image Text:
Variable Costs per Unit Fixed Costs (total) Direct materials.. $100 Overhead.... $470,000 Direct labor .. 25 Selling, general and administrative ...... 430,000 Overhead... 20 Selling, general and administrative.... 5
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