Assets Employed $20,000 Desired Rate of Return On Investment (ROI): 30% Production Capacity: 2.000 units Current Production: 1,000 units Variable Costs: Production: Direct Material: $4.00 Direct Labor $3.00 Direct Overhead: $1.00 Marketing Packaging $3.00 Fixed Costs (for all units of Current Production) R&D Costs Call fixed) $1,000 Production $5,000 (depreciation charges) Marketing Fixed Cost: $2,000 (advertising) Financing Fixed Cost: $1.000 (interest on loans) Administration Feed Cost: $3.000 (salaries) Desired Profit: 3086 ROI (Return On Investment Assets Employed The going rate price for a comparable Col-Make is $32.00 in the fourth quarter of your operations in the Washington State you realize that you need to recover your huge R&D cost in a very short time. Accordingly, you set the following price in order to bring more cost to your operations $39.00 051200 12100 525.00 $15.00