1. The Calico Handbag's main product is handbags. The cost to produce 800 handbags include: a. Direct Material b. Direct Labor c. Factory Overherad $15,000 7,000 5,000 27,000 Total Manufacturing cost Management desires a profit of 18% of The Selling and Administrative expenses are $24,000. the invested assets of $240,000. Requird: Determine the amount of desired profit from the production and sale 800 handbags Determine the product cost per unit, selling price and profit per unit for the 800 handbags A. B. 2. The Carrying Company sells carrying cases. Currently the Sun Light Case is purchased at a cost of $65 per unit. This case is used for their lap top computer. The company is currently operating below full capacity and they charge factory overhead to production at a rate of 40% of direct labor cost. The current expected cost of the company to make a comparable handbag is: Direct Material