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Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 29,700 units. Per Unit Total Direct
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 29,700 units.
Per Unit | Total | |||||
Direct materials | $19 | |||||
Direct labor | $7 | |||||
Variable manufacturing overhead | $11 | |||||
Fixed manufacturing overhead | $415,800 | |||||
Variable selling and administrative expenses | $2 | |||||
Fixed selling and administrative expenses | $59,400 |
The company uses a 40% markup percentage on total cost.
(a)
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Your answer is correct.
Compute the total cost per unit.
Total cost per unit | $ |
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(b)
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Your answer is incorrect.
Compute the target selling price.
Target selling price | $ |
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