Innova Corporation makes a commercial-grade cooking griddle. The following information is available for Innova 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.
(a) Compute the total cost per unit
(b) Compute the target selling price