Monty Corporation needs to set a target price for its newly designed product M14M16. The following data relate to this new product.

		Per Unit			Total
Direct materials		$ 42
Direct labor		$ 54
Variable manufacturing overhead		$ 12
Fixed manufacturing overhead					$ 1,411,200
Variable selling and administrative expenses		$ 7
Fixed selling and administrative expenses					$ 940,800

These costs are based on a budgeted volume of 78,400 units produced and sold each year. Monty uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%.

b)Compute the desired ROI per unit for M14M16.

Desired ROI

$ enter the desired return on investment per unit in dollars

per unit

(c)

Compute the target selling price for M14M16.

Target selling price per unit

$ enter the target selling price per unit in dollars

(d)

Compute unit variable cost, unit fixed cost, and unit total cost assuming that 58,800 M14M16s are produced and sold during the year.

Variable cost per unit		$ enter a dollar amount
Fixed cost per unit		enter a dollar amount
Total cost per unit		$ enter a total amount