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Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product...

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Accounting

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Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 7,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $135 Factory overhead $329,000 Direct labor 49 Selling and admin. exp. 112,000 Factory overhead 42 Selling and admin. exp. 34 Total $260 Willis Products desires a profit equal to a 25% rate of return on invested assets of $642,124. a. Determine the amount of desired profit from the production and sale of 7,000 units. b. Determine the total costs for the production of 7,000 units. Variable Fixed Total Determine the cost amount per unit for the production and sale of 7,000 units. per unit c. Determine the total cost markup percentage per unit. (rounded to one decimal place). % d. Determine the selling price per unit. Round to the nearest cent. $ per unit

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