1. Product Cost Method of Product Pricing

   La Femme Accessories Inc. produces women's handbags. The cost of producing 1,300 handbags is as follows:

   Direct materials	$14,800
   Direct labor	7,000
   Factory overhead	6,200
   Total manufacturing cost	$28,000

   The selling and administrative expenses are $28,000. The management desires a profit equal to 15% of invested assets of $504,000.

   If required, round your answers to nearest whole number.

   a. Determine the amount of desired profit from the production and sale of 1,300 handbags. $

   b. Determine the product cost per unit for the production of 1,300 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