21

Product Cost Concept of Product Pricing Mademoiselle Company produces women's handbags. The cost of producing 1,250 handbags is as follows: The selling and administrative expenses are $28,200. The management desires a profit equal to 16% of invested assets of $495,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,250 handbags. is b. Determine the product cost per unit for the production of 1,250 handbags, 3 per unit c. Determine the product cost markup percentage for handbsgs: \%. d. Determine the selling price of handbags. Round your answers to nearest whole value