Estimate the unit selling price of an item for which the following data per unit

Question

Estimate the unit selling price of an item for which the following data per unit is available.

                        

Labor

= 16.8 hours at $15.87/hour

Factory overhead

= 150% of labor

Material costs

= $50.10

Packing cost

= 10% of labor

Subcontract cost

= $10.20

Sales commission

= 10% of selling price

Profit

  = 20% of selling price

  

     

Labor

     

= 16.8 hours at $15.87/hour

     

     

Factory overhead

     

= 150% of labor

     

     

Material costs

     

= $50.10

     

     

Packing cost

     

= 10% of labor

     

     

Subcontract cost

     

= $10.20

     

     

Sales commission

     

= 10% of selling price

     

     

Profit

     

  = 20% of selling price

  

Explanation / Answer

unit selling price = 16.8*15.87 + 150%*16.8*15.87 + 50.10+10%*16.8*15.87 + 10.20 =$753.50

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