Find the estimated selling price per unit


"You have been asked to estimate the selling price per unit of a new line of clothing. Pertinent data are as follows:

Direct labor: $15.00 per hour
Production material: $3.75 per unit
Factory overhead: 125% of direct labor
Packing costs: 75% of direct labor
Desired profit: 20% of manufacturing cost

Past experience has shown that an 80% learning curve applies to the labor required for producing these units. The time to complete the first unit has been estimated to be 1.76 hours.

Using the answer to part ‘a' as the standard time estimate, find the estimated selling price per unit.

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Microeconomics: Find the estimated selling price per unit
Reference No:- TGS066640

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