La Femme Accessories Inc. produces women's handbags. The cost of producing 1,160 handbags is as follows:

Direct materials	$14,100
Direct labor	7,800
Factory overhead	5,800
Total manufacturing cost	$27,700

The selling and administrative expenses are $29,000. The management desires a profit equal to 17% of invested assets of $495,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,160 handbags. $

b. Determine the product cost per unit for the production of 1,160 handbags. $per unit

c. Determine the product cost markup percentage for handbags. %

d. Determine the selling price of handbags. Round your answers to nearest whole value.

Cost	$per unit
Markup	$per unit
Selling price	$per unit

A machine with a book value of $252,000 has an estimated six-year life. A proposal is offered to sell the old machine for $215,500 and replace it with a new machine at a cost of $283,100. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $50,400 to $40,300.

a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate subtracted or negative numbers or a loss.