Lovell Computer Parts Inc. is in the process of setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of55,000units.

PER UNIT Direct materials$54Direct labor$22Variable manufacturing overhead$23

TOTAL

Fixed manufacturing overhead$550,000Variable selling and administrative expenses$13Fixed selling and

administrative expenses$275,000

Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a22% return on investment (ROI) on invested assets of $1,000,000.

I need help computing the markup percentage and target selling price that will allow Lovell Computer Parts to earn its desired ROI of22% on this new component