1. Product Cost Method of Product Pricing

   La Femme Accessories Inc. produces women's handbags. The cost of producing 1,130 handbags is as follows:

   Direct materials	$15,100
   Direct labor	7,100
   Factory overhead	6,400
   Total manufacturing cost	$28,600

   The selling and administrative expenses are $27,900. The management desires a profit equal to 14% of invested assets of $503,000.

   If required, round your answers to nearest whole number.

   a. Determine the amount of desired profit from the production and sale of 1,130 handbags. $

   b. Determine the product cost per unit for the production of 1,130 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