Reference no: EM131735748

Problem - Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 6,000 units of medical tablets are as follows:

Variable costs per unit:

Direct Materials: $104

Direct Labor: $38

Factory Overhead: $32

Selling & Ad.: $26

total: $200

Fixed costs:

Factory overhead: $216,000

Selling and admin. exp.: 72,000

Willis Products desires a profit equal to a 20% rate of return on invested assets of $558,600.

a. Determine the total manufacturing costs for the production and sale of 6,000 units.

Determine the cost amount per unit for the production and sale of 6,000 units.

b. Determine the product cost markup percentage per unit. Round your percentage answer to one decimal place.

c. Determine the selling price per unit. Use the rounded product cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar.