Total Cost Concept of Product Costing

Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 6,000 units of medical tablets are as follows:

Variable costs per unit:					Fixed costs:
	Direct materials	$130				Factory overhead	$270,000
	Direct labor	48				Selling and admin. exp.	90,000
	Factory overhead	40
	Selling and admin. exp.	32
Total		$250

Willis Products desires a profit equal to a 20% rate of return on invested assets of $1,050,900.

a. Determine the amount of desired profit from the production and sale of 6,000 units. $

b. Determine the total costs for the production of 6,000 units.

Variable	$
Fixed
Total	$

Determine the cost amount per unit for the production and sale of 6,000 units. $ per unit

c. Determine the total cost markup percentage per unit. (rounded to one decimal place). %

d. Determine the selling price per unit. Round to the nearest cent. $ per unit