Product Cost Concept of Product Pricing

Mademoiselle Company produces women's handbags. The cost of producing 1,110 handbags is as follows:

Direct materials	$15,000
Direct labor	8,100
Factory overhead	6,100
Total manufacturing cost	$29,200

The selling and administrative expenses are $28,400. The management desires a profit equal to 15% of invested assets of $500,000.

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. $fill in the blank 1

b. Determine the product cost per unit for the production of 1,110 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. Round your answers to nearest whole value.

Cost	$fill in the blank 4per unit
Markup	$fill in the blank 5per unit
Selling price	$fill in the blank 6per unit