Marshall publishers inc. budgeted production of 27,000 dairies in 2016 paper is required to produce a dairy assume 103 square yards of paper are required for each dairy the estimated january 1, 2016 paper inventory is 111,000 square yards the desire december 31, 2016 paper inventory is 125,000 square yards if paper costs $0,16 per square yard determine the direct materials purchases budget for 2016?

to find the unit price, we must figure out the cost of one item (in this case one dish towel).   to do this, we divide the total price ($7.92) by the number of items bought (for this problem it is 8, because there are eight dish towels in one pack).  

$7.92/8 = $0.99

therefore, the unit price, or the price of one dish towel, is $0.99.

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