1. **Stating the problem:** Calculate the total cost, cost per unit, and selling price of a product using cost-plus pricing with given data. Then, apply premium and penetration pricing strategies with different markups. 2. **Formula and explanation:** - Total Cost = Direct Materials Used + Direct Labor + Manufacturing Overhead - Cost per Unit = Total Cost / Number of Units Produced - Selling Price = Cost per Unit \times (1 + Markup Rate) 3. **Calculate Direct Materials Used:** $$\text{Direct Materials Used} = \text{Beginning Raw Material} + \text{Materials Purchased} - \text{Ending Raw Material}$$ $$= 65000 + 20500 - 20550 = 64950$$ 4. **Calculate Direct Labor:** $$\text{Direct Labor} = \text{Labor Hour} \times \text{Rate per Hour} = 55 \times 560 = 30800$$ 5. **Calculate Manufacturing Overhead:** Sum of Utilities, Factory Rent, Depreciation, Indirect Labor, Insurance, Other Indirect Cost $$= 15000 + 30000 + 11000 + 5000 + 12000 + 7000 = 80000$$ 6. **Calculate Total Cost:** $$= 64950 + 30800 + 80000 = 175750$$ 7. **Calculate Cost per Unit:** $$= \frac{175750}{3100} \approx 56.69$$ 8. **Calculate Selling Price with 30% Markup:** $$= 56.69 \times (1 + 0.30) = 56.69 \times 1.30 \approx 73.70$$ 9. **Calculate Selling Price with Premium Pricing (300% Markup):** $$= 56.69 \times (1 + 3.00) = 56.69 \times 4 = 226.76$$ 10. **Calculate Selling Price with Penetration Pricing (10% Markup):** $$= 56.69 \times (1 + 0.10) = 56.69 \times 1.10 = 62.36$$ **Final answers:** - Total Cost = 175750 - Cost per Unit = 56.69 - Selling Price (30% markup) = 73.70 - Selling Price (Premium 300% markup) = 226.76 - Selling Price (Penetration 10% markup) = 62.36