Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 1,100 handbags is as follows: Direct materials $14,600 Direct labor 7,400 Factory overhead 6,400 Total manufacturing cost $28,400 The selling and administrative expenses are $28,700. The management desires a profit equal to 14% of invested assets of $498,000. If required, round your answers to nearest whole number. a.  Determine the amount of desired profit from the production and sale of 1,100 handbags. $ b.  Determine the product cost per unit for the production of 1,100 handbags. $per unit c.  Determine the product cost markup percentage for handbags.  % d.  Determine the selling price of handbags. Round your answers to nearest whole value. Cost $per unit Markup $per unit Selling price $per unit

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.