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    angie343536's Avatar
    angie343536 Posts: 14, Reputation: 0
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    #1

    Feb 18, 2008, 11:41 PM
    Calculate the per-unit cost
    Sassy Shoes purchased 400 pairs of shoes from Shoe Discounters for $3,600. In addition to the purchase price, Sassy paid workers $200 to unpack and display the shoes. Sassy returned 40 pairs were severely damaged during shipping to the vendor (note: the vendor paid the shipping costs to return the items). The shoes were shipped FOB shipping point with freight charges amounting to $400. Sassy also hired a new sales person to sell the shoes for a salary of $250 per week plus commissions. Based on the information provided, calculate the per-unit cost of the shoes.
    CliffARobinson's Avatar
    CliffARobinson Posts: 1,416, Reputation: 101
    Ultra Member
    		  
    #2

    Mar 7, 2012, 03:43 PM
    $3240 of inventory purchased (after 40 pairs returned).

    $9 per pair / 360 pairs

    + 0.56 per pair for $200 to unpack and display
    + 1.11 per pair for $400 shipping
    -------------------------------------------------------
    $10.67 per pair

    From the cost of inventory, you now have to calculate your overhead and labor to arrive at your per unit cost from which you can eventually determine your retail price.

    Further resources:
    Pricing, CDFS-1326-95
    Cost of goods sold - Wikipedia, the free encyclopedia
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