Talia Corp. produces digital cameras. For each camera produced, direct materials are $20, direct labor is $16, variable manufacturing overhead is $12, fixed manufacturing overhead is $28, variable selling and administrative expenses are $10, and fixed selling and administrative expenses are $24. Compute the target selling price assuming a 40% markup on total per unit cost. Target selling price

Talia Corp.

Target Selling Price

= $154

Explanation:

a) Data and Calculations:

Direct materials =                                           $20

Direct labor =                                                     16

Variable manufacturing overhead =                12

Fixed manufacturing overhead =                    28

Variable selling & administrative expenses = 10

Fixed selling and administrative expenses = 24

Total cost                                                       $110

40% markup on total per unit cost =              44

Target Selling Price =                                  $154

b) Talia bases its target selling price on the addition of 40% of the total cost  to the total cost (including manufacturing costs, selling, and administrative expenses).

answer; the correct answer is (direct foreign investment);

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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