Problem
Product Cost Concept of Product Pricing Mademoiselle Company produces women's handbags. The cost of producing 1,160 handbags is as follows:
Direct materials $16,500
Direct labor 8,100
Factory overhead 6,100
Total manufacturing cost $30,700
The selling and administrative expenses are $28,700. The management desires a profit equal to 16% of invested assets of $502,000. If required, round your answers to nearest whole number.
a. Determine the amount of desired profit from the production and sale of 1,160 handbags. $
b. Determine the product cost per unit for the production of 1,160 handbags. $ per unit
c. Determine the product cost markup percentage for handbags. %
d.
1. Determine the selling price of handbags.
2. Round your answers to nearest whole value.
3. Cost $ per unit Markup $ per unit Selling price $ per unit.