Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 10,500 units follow. The company targets a profit of $315,000 on this product.

Step-by-step explanation:

Assume the costs are as in this table

1. Total cost per unit

(a) Total cost

(b) Cost per unit

2. Markup percentage

3. Sales price by total cost method

Assume the markup percentage is 12.5 %.

Sales price = cost + markup percentage × cost  

Sales price = $240 + ( 0.125× $240) = $240+ $30 = $270

c. 16 units

step-by-step explanation:

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