Product Cost Concept of Product Pricing

La Mujer Accessories Inc. produces womens handbags. The cost of producing 1,140 handbags is as follows:

Direct materials	$16,500
Direct labor	8,400
Factory overhead	6,400
Total manufacturing cost	$31,300

The selling and administrative expenses are $26,400. The management wants a profit equal to 15% of invested assets of $504,000.

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. $fill in the blank 1

b. Determine the product cost per unit for the production of 1,140 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