Lodge Company makes cast-iron buckets. The following information is available for Lodge Companys anticipated annual volume of 50,000 buckets.

Per Unit Total

Direct materials $20

Direct labor $10

Variable manufacturing overhead $25

Fixed manufacturing overhead $750,000

Variable selling and administrative expenses $18

Fixed selling and administrative expenses $450,000

The company has a desired ROI of 30%. It has invested assets of $5,500,000.

a. Compute the total cost per unit. (3 Points)

b. Compute the desired ROI per unit. (3 points)

c. Compute the target selling price (to 2 decimals). (3 points)