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In the previous period,Amazon company produced 13,750 units. Total costs and unit costs incurred were as follows: Statements Total Costs Unit Costs Variable production costs

In the previous period,Amazon 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 Amazon using the following methods:

1. Gross margin pricing method?

2. Return on assets pricing method?

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