Exercise 22-4 Kaspar Corporation makes a commercial-grade cooking griddle. The f

Question

Exercise 22-4

Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 33,900 units.

The company uses a 44% markup percentage on total cost.

Compute the total cost per unit.

Compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)

Per Unit Total Direct materials $17 Direct labor $5 Variable manufacturing overhead $12 Fixed manufacturing overhead $339,000 Variable selling and administrative expenses $6 Fixed selling and administrative expenses $101,700

Explanation / Answer

Compute the total cost per unit.
  

Total cost per unit = (339000/33900)+17+5+12 = 44 per unit

Target selling price = 44*144/100 = 63.36 per unit

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