Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units. Per Unit Total Direct materials $32 Direct labor 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $12,000,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 7,200,000 The company has a desired ROI of 20%. It has invested assets of $120,000,000 Instructions Compute each of the following: Total cost per unit Desired ROI per unit. 3 Markup percentage using total cost per unit. Target selling price 2