The selling and administrative expenses are 28000 the

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Mademoiselle Company produces women's handbags. The cost of producing 1,200 handbags is as follows:               


Direct materials

  

$16,000

  
  

Direct labor

  

8,000

  
  

Factory overhea

  

6,000

  
  

Total manufacturing   cost

  

$30,000

  

The selling and administrative expenses are $28,000. The management desires a profit equal to 16% of invested assets of $500,000.

If required, round your answers to nearest whole number.

a. Determine the amount of desired profit from the production and sale of 1,200 handbags.

b. Determine the product cost per unit for the production of 1,200 handbags.

c. Determine the product cost markup percentage for handbags.

d. Determine the selling price of handbags. Round your answers to nearest whole value.

Reference no: EM13589997

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