Problem
Jell Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,763 units of its sole product. Jell desires a profit equal to a 25% rate of return on invested assets of $587,985.00.
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Fixed factory overhead cost
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$36,960.00
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Fixed selling and administrative costs
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$7,754.00
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Variable direct materials cost per unit
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$4.25
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Variable direct labor cost per unit
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$1.88
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Variable factory overhead cost per unit
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$1.13
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Variable selling and administrative cost per unit
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$4.50
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Determine the cost per unit for the production and sale of the company's product.