BA225 Managerial Accounting: Module 4 Problem 2 - Innova Corporation

BA225 Managerial Accounting Module 4 Exercises Problem 2 Innova Corporation makes a commercial-grade cooking griddle. The following information is available for Innova Corporation's anticipated annual volume of 30,000 units. Per Unit Total Direct materials 17 Direct labor 8 Variable manufacturing overhead 11 Fixed manufacturing overhead 360,000 Variable selling and administrative expenses 4 Fixed selling and administrative expenses 150,000 ** The company uses a 40% markup percentage on total cost. (a) Compute the total cost per unit (b) Compute the target selling price