Product Cost Concept of Product Pricing

Mademoiselle Company produces women's handbags. The cost of producing 1,190 handbags is as follows:

Direct materials	$15,500
Direct labor	7,400
Factory overhead	5,500
Total manufacturing cost	$28,400

The selling and administrative expenses are $26,000. The management desires a profit equal to 15% of invested assets of $496,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,190 handbags. $

b. Determine the product cost per unit for the production of 1,190 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