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Product Cost Method of Product Pricing
 
La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows:

Direct materials $14,600
Direct labor 7,400
Factory overhead 6,400
Total manufacturing cost $28,400

The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000.
If required, round your answers to nearest whole number.\
Determine the selling price of handbags. Round your answers to nearest whole value.

Cost $per unit
Markup $per unit
Selling price $per unit

 

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