Product Prong using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional Business Digital Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $6,000,000 in assets. The costs of producing and selling 20,000 units of flat panel displays are estimated as follows: Vanable costs per unit: Direct materials $120 Direct labor 30 Factory overhead 50 Selling and administrative expenses 35 Total variable cost per unit $235 Fixed costs Factory overhead $1,000,000 Selling and administrative expenses 400,000 Digital Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Digital Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must eam a 15% return on invested assets Required: Note: Round all markup percentages to two decimal places, if required. Round all costs per unit and selling prices per unit to the nearest whole dollar. 1. Determine the amount of desired profit from the production and sale of flat panel displays. 900,000