Question
La Mujer Accessories Inc. produces womens handbags. The cost of producing 1,200 handbags is as follows: Direct materials $14,300 Direct labor 8,300 Factory overhead 6,100
La Mujer Accessories Inc. produces womens handbags. The cost of producing 1,200 handbags is as follows:
Direct materials | $14,300 |
Direct labor | 8,300 |
Factory overhead | 6,100 |
Total manufacturing cost | $28,700 |
The selling and administrative expenses are $27,900. The management wants a profit equal to 14% 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 1,200 handbags. $fill in the blank 1
b. Determine the product cost per unit for the production of 1,200 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.
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 |
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