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Problem 1: Hikan Pharmaceuticals produces many helpful drugs for patients. Tritan is a popular one. Manufacturing overhead costs from the facility are allocated to each product based on the proportion of direct raw material cost for that product to all raw materials in production at the Hikan facility. For this facility, the total manufacturing overhead is $390,000 per year. The direct raw material cost for ALL materials is $?B0,000 and Tritan's material cost is $320,000. The facility makes 80,000 units of Tritan year. The labor cost allocated to each unit of Tritan is $530. What price would you need to charge for these units to provide a 25% mark-up over the Cost of Goods Sold?
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