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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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