Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The...
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Accounting
Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The following data relate to it:
Per Unit
Total
Direct materials
$14
Direct labour
19
Variable manufacturing overhead
12
Fixed manufacturing overhead
$4,060,000
Variable selling and administrative expenses
3
Fixed selling and administrative expenses
2,610,000
These costs are based on a budgeted volume of 290,000 units produced and sold each year. Lafleur uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 20%.
Find the markup per unit
Find the target selling price
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