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
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