Please give explanation and fill the boxes accordingly.

National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Total Unit $25 $40 $10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses 5 Fixed selling and administrative expenses $1,440,000 $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%