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$

Question

Business

Abigail Rivas

10 May, 07:50

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$

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Answers (1)

Know the Answer?

Layne Horne · Answer 1

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