Please help with the following problem. Please provide step by step calculations.
Teng Manufacturing Co. expects to produce 30,000 units of product A during 2007. The company made 4,000 units in January. Materials and labor costs for this month were $16,000 and $24,000, respectively. Teng produced 2,000 units in February. Materials and labor costs for February were $8,000 and $12,000 respectively. The company paid $24,000 annual rental fee on manufacturing facility on January 1, 2007. Ignore other manufacturing overhead cost.
Address the following:
Assuming that Teng desires to sell its units for cost plus 45% of cost, what price should be charged for the units produced in January and February?