La Femme Accessories Inc. produces women's handbags. The cost of producing 1,140 handbags is as follows:

Direct materials	$14,800
Direct labor	7,900
Factory overhead	5,500
Total manufacturing cost	$28,200

The selling and administrative expenses are $27,000. The management wants a profit equal to 15% of invested assets of $505,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,140 handbags. If required, round your answers to nearest whole number. $fill in the blank 1

b. Determine the product cost per unit for the production of 1,140 handbags. $fill in the blank 2per unit

c. Determine the product cost markup percentage for handbags. fill in the blank 3 %

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

Cost	$fill in the blank 4	per unit
Markup	fill in the blank 5	per unit
Selling price	$fill in the blank 6	per unit

Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cellular phones are as follows:

Variable costs per unit:						Fixed costs:
	Direct materials		$150				Factory overhead	$350,000
	Direct labor		25				Selling and admin. exp.	140,000
	Factory overhead		40
	Selling and administrative expenses		25
		Total	$240

Smart Stream wants a profit equal to a 30% rate of return on invested assets of $1,200,000.

a. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones.

Total costs	$fill in the blank 1
Cost amount per unit	$fill in the blank 2

b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. fill in the blank %

c. Determine the selling price of cellular phones. Round to the nearest dollar. $fill in the blank per phone