Greenspring produced 10 000 units during January 2017 The pr

Greenspring produced 10 000 units during January 2017. The pricing policy is to set the pr per unit at the product cost (per unit) plus 100% mark-up. Presented below are the costs and expenses that are incurred in January 2017 Factory electricity cost $10 200Direct labour S69 300 yo Factory manager\'s salary o Indirect factory labour 28 300-pertod s 000 Sales staff salaries 48 100 Repairs to office equipment 230 500 9 Factory machinery repairs 257 300 Marketing costs o Indirect materials Direct materials 2 300 8 500 C 900 periad - Depreciation on office Costs. equipment 8 320 Office supplies used

Solution

Price per unit: $ 124.54

Computation of price per unit:

Direct Materials	$ 257,300
Direct Labor	69,300
Indirect Materials	230,500
Indirect Factory Labor	48,100
Factory Electricity Cost	10,200
Factory Manager\'s Salary	5,000
Factory Machinery Repairs	2,300
Total Manufacturing Cost	$ 622,700
Production in Units	10,000
Unit Product Cost	$ 62.27
Desired Mark-up	62.27
Price per unit	$ 124.54