Wesley Company makes bowling balls and uses the total cost method in setting product prices....

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Accounting

Wesley Company makes bowling balls and uses the total cost method in setting product prices. Its costs for producing 10,000 bowling balls follow. The company targets a 12.5% markup on total cost. The dollar markup per unit is:

Variable Costs per Unit Fixed Costs (total)
Direct materials $ 50.00 Overhead $ 235,000
Direct labor 12.50 Selling, general, and administrative 215,000
Overhead 10.00
Selling, general, and administrative 2.50

Select one:

a.$9.38.

b.$5.63.

c.$16.88.

d.$13.75.

e.$15.00.

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