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Gibbs Corporation produces industrial robots for high-precision manufacturing. The following information is given for Gibbs Corporation. Per Unit Total Direct materials $390 Direct labor $350

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

Per Unit Total
Direct materials $390
Direct labor $350
Variable manufacturing overhead $ 77
Fixed manufacturing overhead $1,502,400
Variable selling and administrative expenses $ 56
Fixed selling and administrative expenses $ 638,520

The company has a desired ROI of 18%. It has invested assets of $63,852,000. It anticipates production of 3,130 units per year.

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

b.) Compute the desired ROI per unit.

c.) Compute the target selling price.

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