A standard unit of Witola Manufacturing Company contains the following marginal costs: Per Unit Direct materials K5.60 Direct labour cost 1.50 Variable factory overhead 0.40 7.50 Fixed factory overhead is budgeted at K280,000 for a normal sales volume of 400,000 units. Factory capacity is 500,000 units. Distribution and administrative expenses are budged at K180,000. Capital employed is considered to consist of 50 per cent of net sales for current assets and K450,000 for fixed assets. Additional analysis indicates: (a) Direct material prices will increase K0.40 per unit. (b) An unfavourable direct labour variance of approximately 6 per cent has been experienced for the past two years. (c) Customers discounts average toabout 2 per cent of the gross sales price. REQUIRED: Determine a sales price which will yield 16 per cent return on capital employed