Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 483,000 units. Per Unit Total $6 $10 $14 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $2,898,000 $17 $1,449,000 The company has a desired ROI of 25%. It has invested assets of $27,048,000 (a) Compute the total cost per unit, Total cost per unit $

The total cost per unit = Direct material+ Direct labor + variable manufacturing overhead + [fixed manufacturing overhead + fixed selling and administration expenses /no. of units]

Total cost per unit = $6 + $10 +$14 + [ $2,898,000 + $1,449,000/483,000]

Total cost per unit = $34

Total cost is the sum of all expenses incurred to produce an output of any kind. From an accounting standpoint, financial reporting, wherein operational expenses must be allocated to specific assets, is where all the total cost approach is more useful. Short-term decision-making, when it is more likely which only indirect expenses would be taken into account, makes total cost less relevant. It provides the most thorough picture of invested money overall. Below are listed the multiple meanings for total cost. Total cost is the sum of all expenses associated with an item, including fixed expenses, indirect cost, or mixed costs.

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