$1$

Bayan Company wants to use absorption cost$-$plus pricing to set the selling price on a newly remodeled product. The company plans to invest $$700,000$ to produce and sell $60,000$ units. Its required return on investment $($ROI$)$ is $10\%.$ The accounting department has provided cost estimates for the new product as follows:

$\backslash$table$[[,$Per Unit,Total$],[$Direct materials,$$4\mathrm{.}50,],[$Direct labor,$$4\mathrm{.}50,],[$Variable manufacturing overhead,$$2\mathrm{.}00,],[$Fixed manufacturing overhead,,$$85,000$