What should we price art at if we want to have

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Reference no: EM133379707

Question: What should we price Art at if we want to have a 45.6% margin. Account for unit cost, period expenses and overhead. The production cost is in the report. Ignore inventory carrying costs and assume period expenses and overhead is 50% of production cost. What should the price point be?

Data Given:

What should we price Art at if we want to have a 45.6% margin. Account for unit cost, period expenses and overhead. The production cost is in the report. Ignore inventory carrying costs and assume period expenses and overhead is 50% of production cost. What should the price point be?

Info given:

Category Sales $28,413

Variable Costs

Direct Material $11,755

Direct Labor $7,763

Inventory Carry $76

Total Variable Costs (Labor, Material, Carry) $19,594

Category Contribution Margin $8,819

Period Costs

Depreciation $1,193

SG&A $0

R&D $970

Promotions $1,245

Sales $1,795

Administration $225

Total Period Costs $5,428

Net Margin $3,391

Reference no: EM133379707

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