Garcia Co. sells snowboards. Each snowboard requires direct materials of $110, direct labor of $40, and variable overhead of $55. The company expects fixed overhead costs of $655,000 and fixed selling and administrative costs of $170,000 for the next year. It expects to produce and sell 11,000 snowboards in the next year. Required:
What will be the selling price per unit if Garcia uses a markup of 10% of total cost?

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.