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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

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 $28
Direct labor $43
Variable manufacturing overhead $15
Fixed manufacturing overhead $1,200,000
Variable selling and administrative expenses $ 4
Fixed selling and administrative expenses $ 1,200,000

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%.

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

Variable cost per unit $enter a dollar amount
Fixed cost per unit enter a dollar amount
Total cost per unit $enter a total of the two previous amounts

b. Compute the desired ROI per unit for M14M16.

Desired ROI $enter the desired ROI per unit in dollars per unit

c. Compute the target selling price for M14M16.

Target selling price per unit $

d. Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14M16s are produced and sold during the year.

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

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