Product Cost Method of Product Pricing

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 Direct labor Factory overhead Total manufacturing cost The selling and administrative expenses are $27,200. The management desires a profit equal to 18% of invested assets of$497,000. 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 $16,800 8,000 5,800 $30,600 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 Markup Selling price per unit per unit per unit