Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $109 Factory overhead $114,000 Direct labor Selling and admin. exp. 39,000 Factory overhead Selling and admin. exp. Total $210 Willis Products desires a profit equal to a 25% rate of return on invested assets of $192,000. a. Determine the total manufacturing costs for the production and sale of 3,000 units. Total Manufacturing Costs Variable $ 630000 x Fixed factory overhead 153,000 x Total 783,000 x Determine the cost amount per unit for the production and sale of 3,000 units. el 2011 v nor unit Determine the cost amount per unit for the production and sale of 3,000 units. $ 261 x per unit b. Determine the product cost markup percentage per unit. Round your percentage answer to one decimal place. 6.1 x % c. Determine the selling price per unit. Use the rounded product cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar. $ 276 x per unit Feedback Check My Work a. Divide the total manufacturing (variable and fixed) costs by the number of units produced. b. Divide the desired profit plus the selling and administrative expenses by the total manufacturing cost. c. Add the cost and the mark-up