Given the following information, determine the markup per unit. Direct materials $76,000 Direct labor $130,000 Factory overhead $56,500 Selling and administrative expenses $43,000 Estimated units to be produced and sold 15,000 Total assets $200,000 Desired rate of return 10% Normal selling price per unit $21. 70 a.$21.70 b.$4.89 c.$4.20 d.$17.50

c.$4.20

Explanation:

Calculation to determine the markup per unit.

First step is to find the Total product costs.

Total product cost will be :

Direct materials $76,000 +Direct labor 130,000 +Factory overhead 56,500

= Total product costs $262,500

Second step is to find the Total cost per unit

Using this formula

Total cost per unit=Total product costs/Estimated units to be produced and sold

Let plug in the formula

Total cost per unit= ($262,500 ÷ 15,000 units) Total product costs=$17.50

The Third step is to find the Desired profit

Using this formula

Desired profit=Total assets ×Desired rate of return

Let plug in the formula

Desired profit= ($200,000 × 10%)

Desired profit=$20,000

The fourth step is to find the markup percentage

Using this formula

Markup percentage =[(Desired profit+Selling and administrative expenses)/Total product costs ]

Let plug in the formula

Markup percentage = [($20,000 + $43,000) ÷ $262,500]

Markup percentage=$63,000/$262,500

Markup percentage=24%

The last step is to find the Markup per unit

Using this formula

Markup per unit =Total product costs/Markup percentage

Let plug in the formula

Markup per unit=($17.50 × 24%)

Markup per unit= $4.20

Therefore the Markup per unit will be $4.20

answer; correct answer is investing activity;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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