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Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 18,000 units follow. The company targets a
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 18,000 units follow. The company targets a profit of $567,000 on this product.
Variable Costs per Unit | Fixed Costs | ||||||
Direct materials | $ | 116 | Overhead | $ | 482,000 | ||
Direct labor | 41 | Selling | 114,000 | ||||
Overhead | 36 | Administrative | 340,000 | ||||
Selling | 7 | ||||||
1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the products selling price using the total cost method. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
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