Question

In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses, and plus overhead. At the end of last year the broad cost leader Chester had an Elite product Cake. Use the Inquirer's Production Analysis to find Cake's production cost, (labor materials). Exclude possible inventory carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead

Answer 1

Answer: Hello there is a missing data below is the missing data

The production cost is $21.45.

answer : 32.175 ≈ $32

Step-by-step explanation:

Using the Inquirer's Production Analysis to find Cake's production cost, (labor materials).

Period expenses and Overhead = 1/2 production cost

Minimum price = production cost + period cost + overhead cost ( 1/2 production cost )

∴ Minimum price = 21.45 + 10.725

≥ 32.175