Direct materials --> 12.00

Direct labor --> 9.00

Overhead 11.00

TOTAL --> 32.00

P5-59 (similar to) Question Help Maryville Electrical makes small electric motors for a variety of home appliances. Maryville sells the motors to appliance makers, who assemble and sell the appliances to retail outlets. Although Maryville makes dozens of different motors, it does not currently make one to be used in garage door openers. The company's market research department has discovered a market for such a motor. The market research department has indicated that a motor for garage-door openers would likely sell for $25. A similar motor currently being produced has the following manufacturing costs: E (Click the icon to view the manufacturing costs.) Maryville desires a gross margin of 25% of the manufacturing cost. Read the requirements Requirement 1. Suppose Maryville used cost-plus pricing, setting the price 25% above the manufacturing cost. What price would be charged for the motor? Would you produce such a motor if you were a manager at Maryville? Explain. Begin by calculating the price that would be charged for the motor. Manufacturing cost Gross margin Price