Question
Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The following data relate to it: Per Unit Total Direct
Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The following data relate to it: Per Unit Total Direct materials $12 Direct labour 19 Variable manufacturing overhead 10 Fixed manufacturing overhead $3,304,000 Variable selling and administrative expenses 6 Fixed selling and administrative expenses 1,652,000 These costs are based on a budgeted volume of 236,000 units produced and sold each year. Lafleur uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 30%.
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