Product Cost Method of Product Pricing

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,210 handbags is as follows:

Direct materials	$16,400
Direct labor	7,300
Factory overhead	6,400
Total manufacturing cost	$30,100

The selling and administrative expenses are $27,800. The management desires a profit equal to 15% of invested assets of $499,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,210 handbags. $

b. Determine the product cost per unit for the production of 1,210 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	$
Markup	$
Selling price	$