Question - The Anderson moncadq company produces one unit of one product. The company has budgeted the following cost for this product. The company has a desired income of $60000.
Desired material $30000
Direct labor $20000
Variable indirect production costs $20000
Fixed indirect production cost $7500
Fixed selling and administrative costs $12500
Total cost $120000
1. Determine the target price for this product.
2. What is the target mark up percentage for setting prices as a percentage of total production costs?