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The following data relate to the Bunty. Material cost per unit: 15.00 Labour cost per unit: 52.05 Production overhead cost per machine hour: 9.44 Machine
The following data relate to the Bunty.
Material cost per unit: 15.00
Labour cost per unit: 52.05
Production overhead cost per machine hour: 9.44
Machine hours per unit: 7
General overhead absorption rate: 8% of total production cost
The capital invested in manufacturing and distributing 953 units of the Bunty pa is estimated to be 136,200.
If the required annual rate of return on capital invested in Bunty is 14%, the selling price per unit of the Bunty should be:
a) 153.14
b) 163.91
c) 102.62
d) 163.79
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