National 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		$20
Direct labor		$39
Variable manufacturing overhead		$15
Fixed manufacturing overhead					$1,264,000
Variable selling and administrative expenses		$ 6
Fixed selling and administrative expenses					$ 1,106,000

These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%.

(a)

Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14M16.

Variable cost per unit		$
Fixed cost per unit
Total cost per unit		$

(b)Compute the desired ROI per unit for M14-M16_____________

(c)Compute the target selling price for M14-M16

(d)Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 59,250 M14 and M15 are produced and sold during the year