16. Home Appliances Co. wants to introduce a new digital display, laser driven iron to the market. The estimated unit sales price is $85. The required investment is $3,500,000. Unit sales are expected to be 300,000 and the minimum required rate of return on all investments is 15%. Instructions Compute the target cost per iron. ation produces commercial fertilizer spreaders. The following information is able for Rita's anticipated annual volume of 400,000 units. Per Unit Total Direct materials $32 Direct labor Variable manufacturing overhead 72 Fixed manufacturing overhead $12,000,000 Variable selling and administrative expenses Fixed selling and administrative expenses 7,200,000 The company has a desired ROI of 20%. It has invested assets of $120,000,000. Instructions Compute each of the following: 1. Total cost per unit. 2. Desired ROI per unit. 3. Markup percentage using total cost per unit 4. Target selling price