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Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $18, direct labor $14, variable manufacturing overhead $9, fixed manufacturing overhead $11, variable selling and administrative expenses $6, and fixed selling and administrative expenses $12. Using a 37% markup percentage on total per unit cost, compute the target selling price.

Respuesta :

Answer:

$88.90

Explanation:

The computation of the target selling price is shown below:-

Total cost = Direct material + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead + Variable selling and administrative expenses + Fixed selling and administrative expenses

$18 + $14 + $9 + $11 + $6 + $12

= $70

Target selling price = Total cost + (100 + Markup percentage)

= $70 × (100 + 27%)

= $70 × 127%

= $88.90

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