Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation.

	Per Unit	Total
Direct materials	430
Direct labor	310
Variable manufacturing overhead	76
Fixed manufacturing overhead		1,770,000
Variable selling and administrative expenses	59
Fixed selling and administrative expenses		540,000

The company has a desired ROI of 22%. It has invested assets of $54,120,000. It anticipates production of 3,000 units per year.

Fixed manufacturing overhead = 590 per unit

fixed selling & admin expenses = 180 per unit

Desired ROI = 3969 per unit

Compute the markup percentage and target selling price using variable-cost pricing.

Markup percentage

Target selling price