Elucidate what is the minimum price the product could have

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Q. In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses also plus overhead.

At the end of last year the broad cost leader Baldwin had an Elite product Buddy. Use the Inquirer's Production Analysis to find out Buddy's production cost, (labour materials). Exclude possible inventory carrying costs. Suppose period expenses also overhead total 1/2 of their production cost. Elucidate what is the minimum price the product could have been sold for to cover the unit cost, period expenses also overhead?

Reference no: EM1373336

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