Royal Company manufactures two products, Tables and Seats. Both products are manufactured in a single factory. There is $1,600,000 of factory overhead budgeted for the period. Royal Company plans to manufacture 1,000 units of each product. Assume tables and seats both require 10 direct labor hours per unit to manufacture. Required:

1. Determine the total cost for a table and for the seat.

2. Based on that determine the selling price for the table and for the seat, when company wants to earn 40% of profit margin on total cost..