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An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 298 units of
An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 298 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required to produce a unit is 9. The average labor rate is $11 per hour. The materials cost $18 per unit. Overhead for an additional 298 units is estimated at 69% of the direct labor cost. If the company wants to have a 32% profit margin, what should be the unit selling price to quote? The unit selling price is $ (Round your answer to the nearest dollar.)
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