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Flounder Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Direct materials Direct
Flounder Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $28 $40 $10 $7 Total $1,296,000 $864,000 These costs are based on a budgeted volume of 72,000 units produced and sold each year. Flounder uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%.
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