Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 521,000 units.

		Per Unit			Total
Direct materials		$ 7
Direct labor		$9
Variable manufacturing overhead		$13
Fixed manufacturing overhead					$3,752,000
Variable selling and administrative expenses		$13
Fixed selling and administrative expenses					$1,608,000

The company has a desired ROI of 25%. It has invested assets of $27,872,000.

1.) Compute the total cost per unit

2.)Desired ROI

3.)Markup percentage using target cost

4) Target Selling Price

a) Assume that Leno uses cost-plus pricing, setting the selling price 23% above its costs. What would be the price charged for the All-Body swimsuit?

b) Assume that Leno uses target costing. What is the price that Leno would charge the retailer for the All-Body swimsuit?

c) $What is the highest acceptable manufacturing cost Leno would be willing to incur to produce the All-Body swimsuit, if it desired a profit of $22 per unit?