Question
Mademoiselle Company produces women's handbags. The cost of producing 1,140 handbags is as follows: Direct materials $15,900 Direct labor 7,400 Factory overhead 6,500 Total manufacturing
Mademoiselle Company produces women's handbags. The cost of producing 1,140 handbags is as follows:
Direct materials | $15,900 |
Direct labor | 7,400 |
Factory overhead | 6,500 |
Total manufacturing cost | $29,800 |
The selling and administrative expenses are $28,300. The management desires a profit equal to 17% of invested assets of $503,000.
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. $
b. Determine the product cost per unit for the production of 1,140 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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