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

		Per Unit			Total
Direct materials		$420
Direct labor		$310
Variable manufacturing overhead		$ 75
Fixed manufacturing overhead					$1,494,600
Variable selling and administrative expenses		$ 61
Fixed selling and administrative expenses					$ 578,760

The company has a desired ROI of 18%. It has invested assets of $65,190,000. It anticipates production of 3,180 units per year.

(a)

Compute the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.

Fixed manufacturing overhead		$	per unit
Fixed selling and administrative expenses		$	per unit

(b)

Compute the desired ROI per unit

(c)

Compute the desired target selling price