Question
Product Cost Concept of Product Pricing Mademoiselle Company produces women's handbags. The cost of producing 1,290 handbags is as follows: Direct materials $15,400 Direct labor
Product Cost Concept of Product Pricing
Mademoiselle Company produces women's handbags. The cost of producing 1,290 handbags is as follows:
Direct materials | $15,400 |
Direct labor | 8,700 |
Factory overhead | 6,000 |
Total manufacturing cost | $30,100 |
The selling and administrative expenses are $26,400. The management desires a profit equal to 14% of invested assets of $505,000.
If required, round your answers to nearest whole number.
a. Determine the amount of desired profit from the production and sale of 1,290 handbags. $
b. Determine the product cost per unit for the production of 1,290 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 |
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