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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.
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