Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 2,000 units of medical tablets are as follows:

Variable costs per unit:					Fixed costs:
	Direct materials	$146				Factory overhead	$100,000
	Direct labor	53				Selling and admin. exp.	34,000
	Factory overhead	45
	Selling and admin. exp.	36
Total		$280

Willis Products desires a profit equal to a 25% rate of return on invested assets of $260,944.

a. Determine the amount of desired profit from the production and sale of 2,000 units.

b. Determine the total costs for the production of 2,000 units.

Variable	$fill in the blank 2
Fixed	fill in the blank 3
Total	$fill in the blank 4

Determine the cost amount per unit for the production and sale of 2,000 units.

c. Determine the total cost markup percentage per unit. (rounded to one decimal place).
%

d. Determine the selling price per unit. Round to the nearest cent.
$fill in the blank 7 per unit

Answer rating: 100% (QA)

Solution aComputation of Amount of desired Profit Amount of Desired P... View the full answer