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 of45,000units.

Per Unit Total Direct materials $45 Direct labor $27 Variable manufacturing overhead $21 Fixed manufacturing overhead $540,000 Variable selling and administrative expenses $15 Fixed selling and administrative expenses $225,000