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Assume the following data for 125,000 units of a product that Leto Company expects to produce and sell during the current year: Manufacturing costs: Direct
Assume the following data for 125,000 units of a product that Leto Company expects to produce and sell during the current year: Manufacturing costs: Direct materials $1,376,000 Direct labor 3,392,000 Factory overhead: Variable costs $392,000 Fixed costs 130,000 522,000 Total manufacturing costs $5,290,000 Selling and administrative expenses: Variable expenses $373,000 Fixed costs 613,000 Total selling and administrative expenses 986,000 Total cost $6,276,000 Desired rate of return 30% Total assets $1,581,000 What will the normal selling price per unit be if calculated using the total cost concept? (Round the computations to two decimal places.) a. $54.00 b. $46.41 c. $50.21 d. $27.00
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