Murrells Inlet Hammock Company wants to know how to price their high-quality hammocks. They enlist you to help them determine their price. They have collected the following budget information; Total Direct Material Cost $250,000, Total Direct Labor Cost $75,000, Total Manufacturing Overhead Cost $49,000, Total Selling and Administrative Expenses $37,000. Murrells Inlet's desired profit is a 60% return on investment of their $750,000 of total assets. They estimate they will sell 3,000 hammocks. At what amount should Murrells Inlet price its hammocks, if they are using the Product Cost Method of pricing?

Answer rating: 100% (QA)

To determine the price of the hammocks using the product cost method we need to calculate the total ... View the full answer