Product Cost Concept of Product Pricing La Mujer Accessories Inc. produces women's handbags. The cost of producing 1,240 handbags is as follows: Direct materials Direct labor $14,900 7,200 Factory overhead 5,700 Total manufacturing cost $27,800 The selling and administrative expenses are $26,200. The management wants a profit equal to 14% 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 1,240 handbags. 70,420