Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 10,000 units follow. The company targets a 12.5% markup on total cost. Variable Costs per Unit Direct materials $ 100 Direct labor 25 Overhead 20 Selling, general and administrative 5 Fixed Costs (total) Overhead $ 470,000 Selling, general and administrative 430,000 1. Compute the total cost per unit if 10,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit.
