SLM Corporation produces commercial fertilizer spreaders. The following information is available for SLMs anticipated annual volume of 525,000 units.

Per Unit Total

Direct materials $32

Direct labor 54

Variable manufacturing overhead 72

Fixed manufacturing overhead $11,000,000

Variable selling and administrative expenses 34

Fixed selling and administrative expenses 7,700,000

The company has a desired ROI of 15%. It has invested assets of $175,000,000.

Instructions

(Round to the nearest dollar)

Compute each of the following: (Show your work)

Total cost per unit. (Hint: include fixed costs on a per unit basis)

Desired ROI per unit.

Markup percentage using total cost per unit.

Target selling price.