Question
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,170 handbags is as follows: Direct materials$14,300 Direct labor8,300 Factory overhead6,200 Total manufacturing cost$28,800
La Femme Accessories Inc. produces women's handbags.
The cost of producing 1,170 handbags is as follows:
Direct materials$14,300
Direct labor8,300
Factory overhead6,200
Total manufacturing cost$28,800
The selling and administrative expenses are $28,000. The management desires a profit equal to 18% 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 1,170 handbags. $ ?
b. Determine the product cost per unit for the production of 1,170 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 |
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