Exercise $23-11($Static$)$ Pricing using total costs LO P$6$

Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing $10,000$ units follow. The company targets a $12\mathrm{.}5\%$ markup on total cost.

Variable Costs per UnitDirect materials$ $100$Direct labor$25$Overhead$20$Selling, general and administrative$5$

Fixed Costs $($total$)$Overhead$ $470,000$Selling, general and administrative$430,000$

Compute the total cost per unit if $10,000$ units are produced.

Compute the dollar markup per unit.

Compute the selling price per unit.