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Cost per unit, target selling price

Please see the attached file.

Selleck Corporation makes a commercial-grade cooking griddle. The following information
is available for Selleck Corporation's anticipated annual volume of 30,000 units.

Per Unit Total
Direct materials $17
Direct labor $ 8
Variable manufacturing overhead $11
Fixed manufacturing overhead $360,000
Variable selling and administrative expenses $ 4
Fixed selling and administrative expenses $150,000

The company uses a 40% markup percentage on total cost.

(a) Compute the total cost per unit.
(b) Compute the target selling price.


Solution Preview

Variable cost per unit: $17 + $8 + $4 +$11 = $40

Total Fixed overheads: ...

Solution Summary

Cost per unit, target selling price.