Question

Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $16; direct labor $5; variable manufacturing overhead $9; fixed manufacturing overhead $12; variable selling and administrative expenses $6; and fixed selling and administrative expenses $13. Using a 43% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)
Target selling price$

Answer 1

Answer:

Selling price= $51.48

Explanation:

Giving the following information:

Direct materials $16

Direct labor $5

Variable manufacturing overhead $9

Variable selling and administrative expenses $6

To compute the total cost per unit, we will use the variable costing approach. We will only compute the variable costs.  

Total cost per unit= $36

Selling price= $51.48