Ayayai Corporation needs to set a target price for its newly designed product M14M16. The following data relate to this new product.

		Per Unit			Total
Direct materials		$ 32
Direct labor		$ 44
Variable manufacturing overhead		$ 8
Fixed manufacturing overhead					$ 1,785,600
Variable selling and administrative expenses		$ 6
Fixed selling and administrative expenses					$ 1,190,400

These costs are based on a budgeted volume of 99,200 units produced and sold each year. Ayayai uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%.

(a)

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Compute the total unit variable cost, total unit fixed cost, and total unit cost for M14M16.

Variable cost per unit		$ enter a dollar amount
Fixed cost per unit		enter a dollar amount
Total cost per unit		$ enter a total amount

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(b)

Compute the desired ROI per unit for M14M16.

Desired ROI

$ enter the desired return on investment per unit in dollars

per unit

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(c)

Compute the target selling price for M14M16.

Target selling price per unit

$ enter the target selling price per unit in dollars

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(d)

Compute unit variable cost, unit fixed cost, and unit total cost assuming that 74,400 M14M16s are produced and sold during the year.

Variable cost per unit		$ enter a dollar amount
Fixed cost per unit		enter a dollar amount
Total cost per unit		$ enter a total amount