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39 votes
39 votes
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $17, direct labor $6, variable manufacturing overhead $3, fixed manufacturing overhead $19, variable selling and administrative expenses $1, and fixed selling and administrative expenses $13. Using a 30% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)

User Chickens
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2.6k points

1 Answer

22 votes
22 votes

Answer:

the target selling price is $76.70

Step-by-step explanation:

The computation of the target selling price is shown below:

= Total cost + 1 × markup percentage

= ($17 + $6 + $3 + $19 + $1 + $13) × (1.30)

= $76.70

hence, the target selling price is $76.70

We simply applied the above formula so that the target selling price could be determined

User Ondrobaco
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2.8k points