Chapter 12, Problem 12.17E

Variable cost concept of product pricing
Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the variable cost concept of applying the cost-plus approach to product pricing.
a.Determine the variable costs and the cost amount per unit for the production and sale of 200,000 units of medical tablets.
b.Determine the variable cost markup percentage per unit. Round to two decimal place.
c.Determine the selling price per unit. Round to the nearest dollar.