1. Compute the total cost per unit.

2. Compute the desired ROI per unit.

3. Compute the markup percentage using total cost per unit.

4. Compute the target selling price.

Exercise 8-5 (Video) 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 491,000 units. Total Per Unit $ 6 Direct materials Direct labor $13 $15 $3,437,000 Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $16 $1,473,000 The company has a desired ROI of 25%. It has invested assets of $29,460,000