Product Cost Concept of Product Pricing

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,110 handbags is as follows:

Direct materials	$14,600
Direct labor	7,800
Factory overhead	5,600
Total manufacturing cost	$28,000

The selling and administrative expenses are $29,000. The management wants a profit equal to 14% of invested assets of $497,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,110 handbags. If required, round your answers to nearest whole number. $

b. Determine the product cost per unit for the production of 1,110 handbags.

$

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