Product Cost Method of Product Pricing

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,240 handbags is as follows:

Direct materials	$14,900
Direct labor	8,600
Factory overhead	6,200
Total manufacturing cost	$29,700

The selling and administrative expenses are $26,900. The management desires a profit equal to 17% of invested assets of $502,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,240 handbags. $

b. Determine the product cost per unit for the production of 1,240 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