National Corporation needs to set a target price for its newly designed product M14 - M16 . The following data relate to this new product Per Unit Total Direct materials $ 24 Direct labor $ 39 Variable manufacturing overhead $ 13 Fixed manufacturing overhead $ 1,520,000 Variable selling and administrative expenses $ 4 Fixed selling and administrative expenses $ 880,000 These costs are based on a budgeted volume of 80,000 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 50 % . Instructions : a) Compute the total variable cost per unit , total fixed cost per unit , and total cost per unit for M14 - M16 .