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  • La Femme Accessories Inc Produces Womens Handbags

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    Kailash Kumar
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    The document provides cost information for manufacturing 800 units of a product. It lists the direct material, direct labor, and factory overhead costs which total $32,000 to produce the units. It then notes the company's annual selling and administrative costs are $17,000 and their target hurdle rate for investments is 22% of $250,000 in invested assets, which is $55,000. It uses this financial information to calculate the desired profit, desired markup percentage, cost per unit, and selling price per unit to meet profit goals.

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    The document provides cost information for manufacturing 800 units of a product. It lists the direct material, direct labor, and factory overhead costs which total $32,000 to produce the units. It then notes the company's annual selling and administrative costs are $17,000 and their target hurdle rate for investments is 22% of $250,000 in invested assets, which is $55,000. It uses this financial information to calculate the desired profit, desired markup percentage, cost per unit, and selling price per unit to meet profit goals.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    251 views1 page

    La Femme Accessories Inc Produces Womens Handbags

    Uploaded by

    Kailash Kumar
    The document provides cost information for manufacturing 800 units of a product. It lists the direct material, direct labor, and factory overhead costs which total $32,000 to produce the units. It then notes the company's annual selling and administrative costs are $17,000 and their target hurdle rate for investments is 22% of $250,000 in invested assets, which is $55,000. It uses this financial information to calculate the desired profit, desired markup percentage, cost per unit, and selling price per unit to meet profit goals.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    800

    dm 18000
    dl 8500
    foh 5500
    total 32000

    selling & admn 17000


    22%
    250000

    Ques 1
    Just multiply hurdle rate with the invested assets
    0.22*250000 $ 55,000

    Ques 2

    Total mfr cost 32000


    no. of units 800
    cost per unit $ 40.00

    ques 3

    desired profit= 55000+17000 $ 72,000


    total mfr cost 32000

    desired markup 72000/32000 225%

    Ques 4
    cost $ 40.00
    Markup $ 90.00
    selling price $ 130.00

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