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    Selling price for units produced in January & February

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    Please help with the following problem. Please provide step by step calculations.

    Teng Manufacturing Co. expects to produce 30,000 units of product A during 2007. The company made 4,000 units in January. Materials and labor costs for this month were $16,000 and $24,000, respectively. Teng produced 2,000 units in February. Materials and labor costs for February were $8,000 and $12,000 respectively. The company paid $24,000 annual rental fee on manufacturing facility on January 1, 2007. Ignore other manufacturing overhead cost.

    Address the following:

    Assuming that Teng desires to sell its units for cost plus 45% of cost, what price should be charged for the units produced in January and February?

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    Solution Preview

    Problem: Assuming that Teng desires to sell its units for cost plus 45% of cost, what price should be charged for the units produced in January and ...

    Solution Summary

    This response provides steps to compute the selling price for units produced in January & February. Step by step calculations are given in the solution.

    $2.19

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