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Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 17,500 units follow. The company targets a
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 17,500 units follow. The company targets a 15.0% markup on total cost. Variable Costs per Unit Direct materials $ 115 Direct labor 40 Overhead 35 Selling, general and administrative 8 Fixed Costs (total) Overhead $ 485,000 Selling, general and administrative 460,000 1. Compute the total cost per unit if 17,500 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit.
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