QS 23-16 (Algo) Pricing using total cost LO P6
Garcia Company sells snowboards. Each snowboard requires direct materials of $110, direct labor of $40, variable overhead of $55, and variable selling, general, and administrative costs of $13. The company has fixed overhead costs of $655,000 and fixed selling, general, and administrative costs of $170,000. It expects to produce and sell 11,000 snowboards.
What is the selling price per unit if Garcia uses a markup of 15% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.)
Selling price