Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 15,500 units follows.

The company targets a 12.0% markup on total cost.

 

1. Compute the total cost per unit if 15,500 units are produced. 

2. Compute the dollar markup per unit. 

3. Compute the selling price per unit.

Variable costs per Unit Direct materials Direct labor Overhead selling, general and administrative Fixed costs (total) Overhead Selling, general and administrative $ 111 36 31 7 $ 481,000 449,000