In the previous period,Alex company produced 13,750 units. Total costs and unit costs incurred were as follows:

 

Statements	Total Costs	Unit Costs
Variable production costs
Direct materials and parts	188,500	13.73
Direct labor	60,000	4.36
Variable manufacturing overhead	44,250	3.21
Total variable production costs	292,750	21.30
Fixed manufacturing overhead	154,875	11.26
Total production costs	447,625	32.56
Selling, general, and administrative expenses
Selling expenses	73,750	5.36
General expenses	36,875	2.68
Administrative expenses	22,125	1.61
Total selling, general, and administrative expenses	132,750	9.65
Total costs and expenses	580,375	42.20

 

No changes in unit costs are expected this period.  Desired profit for the period is $110,625. The company uses assets totalling $921,875 in producing a 14% return on those assets.

 

Instructions: Compute the price of Alex using the following methods:

1.   Gross margin pricing method?

2.   Return on assets pricing method?