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Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a 14.0% markup on total cost. Variable Costs per Unit Direct materials $ 125 Direct labor 40 Overhead 30 Selling, general and administrative 8 Fixed Costs (total) Overhead $ 492,000 Selling, general and administrative 448,000 1. Compute the total cost per unit if 20,000 units are produced. 2. Compute the dollar markup per unit.
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