National Corporation needs to set a target price for its newly designed product M$14$M$16.$ The following data relate to this new product.

Per Unit Total

Direct materials $$25\mathrm{.}00$

Direct labor $40\mathrm{.}00$

Variable manufacturing overhead $10\mathrm{.}00$

Fixed manufacturing overhead $$1,440,000$

Variable selling and administrative expenses $5\mathrm{.}00$

Fixed selling and administrative expenses $960,000$

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 $40\%.$

Instructions

In completing a$-$d below you are to use formulas $($for example: $=$Sum$())$ where appropriate.

a$.$ Compute the total unit variable cost, total unit fixed cost, and total unit cost for M$14$M$16.$

b$.$ Compute the desired ROI per unit for M$14-$M$16.$

c$.$ Compute the target selling price for M$14-$M$16.$

d$.$ Compute unit variable cost, unit fixed cost, and unit total cost assuming that $60,000$ M$14$M$16$s are produced and sold during the year.

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the yellow shaded input cells.