Paige Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Paige Corporation€™s anticipated annual volume of 500,000 units.

The company has a desired ROI of 25%. It has invested assets of $26,000,000.

Instructions
(a) Compute the total cost per unit.
(b) Compute the desired ROI per unit.
(c) Compute the markup percentage using total cost per unit.
(d) Compute the target sellingprice.

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Total Per Unit $ 7 $ 9 $15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $3,000,000 $14 $1,500,000