Task: Selleck Corporation makes a commercial-grade cooking griddle. The following information is available for Selleck Corporation’s anticipated annual volume of 30,000 units.
Per Unit Total
Direct materials $17
Direct labor $ 8
Variable manufacturing overhead $11
Fixed manufacturing overhead $360,000
Variable selling and administrative expenses $ 4
Fixed selling and administrative expenses $150,000
The company uses a 40% markup percentage on total cost.
Instructions:
(a) Compute the total cost per unit.
(b) Compute the target selling price.