information is available about the new product:

a$.$ An investment of $$1,750,000$ will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is $20\%$ on all investments.

b$.$ A standard cost card has been prepared for the sleeping pad, as shown below:

$\backslash$table$[[,\backslash$table$[[$Standard Quantity$],[$or Hours$]],$Standard Price or Rate,Standard Cost$],[$Direct materials,$11$ yards,$$3\mathrm{.}50$ per yard,$$38\mathrm{.}50$