Question

Bramble Corporation produces snowboards. The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $6, fixed manufacturing overhead $13, variable selling and administrative expenses $5, and fixed selling and administrative expenses $13. Using a 40% markup percentage on total per unit cost, compute the target selling price.

Answer 1

See below

Step-by-step explanation:

Given the above information, we will use variable costing to calculate the unitary cost.

Total unitary cost = Direct material + Direct labor + Variable overhead + Variable selling and administrative

= $10 + $4 + $6 + $5

= $25

Selling price = $25 × 1.40

Selling price = $35

Therefore, the targeted selling price is $35