Lafleur Corporation needs to set a target price for its newly designed product, M14-M16. The following data relate to it:

These costs are based on a budgeted volume of 250,000 units produced and sold each year. Lafleur uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 20%.
Instructions
(a) Calculate the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16.
(b) Calculate the desired markup per unit for M14-M16.
(c) Calculate the target selling price for M14-M16.
(d) Assuming that 200,000 M14-M16s are produced during the year, calculate the variable cost per unit, fixed cost per unit, and total cost per unit.

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Per Unit $12 18 10 Total Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $3,000,000 2,000,000