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		$27
Direct labor		$38
Variable manufacturing overhead		$11
Fixed manufacturing overhead					$1,440,000
Variable selling and administrative expenses		$ 4
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%.

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

2. Compute the desired ROI per unit for M14-M16

3. Compute the target selling price for M14-M16