roduct Cost Concept of Product Pricing

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,190 handbags is as follows:

Direct materials	$14,200
Direct labor	8,500
Factory overhead	5,900
Total manufacturing cost	$28,600

The selling and administrative expenses are $28,000. The management wants a profit equal to 16% 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 1,190 handbags. If required, round your answers to nearest whole number. $fill in the blank 1

b. Determine the product cost per unit for the production of 1,190 handbags. $fill in the blank 2per unit

c. Determine the product cost markup percentage for handbags. fill in the blank 3 %

d. Determine the selling price of handbags. Round your answers to nearest whole value.

Cost	$fill in the blank 4	per unit
Markup	fill in the blank 5	per unit
Selling price	$fill in the blank 6	per unit