Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 600,000 units:

       Per Unit                                                                           Total

       Direct materials                                                                  $37

       Direct labor                                                                        43

       Variable manufacturing overhead                                   65

       Fixed manufacturing overhead                            $15,000,000

       Variable selling and administrative expenses                73

       Fixed selling and administrative expenses             11,400,000

The company has a desired ROI of 20%. It has invested assets of $325,000,000.

Required:

Calculate each of the following:

a). Total cost per unit.

b). Desired ROI per unit.

c). Mark-up percentage using total cost per unit.

d). Target selling price.