1. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate or return on invested assets of $7000,00.

2. The cost per unit of the production and sale of the company's product is:

a. $12.11

b. $12.88

c. $15

d. $13.50

Transcribed Image Text:

Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $38,700 7,500 4.60 1.88 1.13 4.50 Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit $38,700 7,500 4.60 1.88 1.13 4.50

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