Parisian Accessories Inc. produces women’s handbags. The cost of producing 800 hand-bags is as follows:

Direct materials ..........$ 15,000

Direct labor ............. 7,000

Factory overhead .......... 5,000

Total manufacturing cost ......$ 27,000

The selling and administrative expenses are $ 24,000. The management desires a profit equal to 15% of invested assets of $ 200,000.

a. Determine the amount of desired profit from the production and sale of 800 handbags.

b. Determine the product cost per unit for the production of 800 handbags.

c. Determine the product cost markup percentage for handbags.

d. Determine the selling price of handbags.