Problem
Garcia Co. sells snowboards. Each snowboard requires direct materials of $120, direct labor of $50, and variable overhead of $65. The company expects fixed overhead costs of $675,000 and fixed selling and administrative costs of $141,000 for the next year. It expects to produce and sell 12,000 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 10% of total cost?