Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently organized as innovation, Inc, consult you regarding a planned now product. They have estimates of the costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for each unit to each a profit in 2016 equal to 15% of their estimated total iong-term imvestment of 5600,000 (fignore income taxes) Their plans indicate that each unit of the new product requres the following Direct Material 4lb of a material coning 57.50 per ito Major items of production overhesd would be annual rent of $69,690 for a dictory building, $42,990 rent for machinery, and s32,550 of indirect material. Other production overhead is estimated to be 5342920 . Selling expenses are an estimated 30% of total sales, and non factory adminstratwe expenses are 20s of totai sales The consensus at innovation is that durne 2016.0,000 unts of product should be produced for seling and another 2000 units should be produced for the next years beginning inventory. Also, an extra 3,000 pounds of material will be purchased as beginning inventory for the necit year. Because of the nature of the manufacturng process, all units started must be compleced, so work in process inveritories are neghibie Required a. Incorporate the above data into a schedule of estimated total manufacturing costs and compute the unit production cost for 2016 Do not use negative signs with any of your answers. Do not use negative signs with any of your answers. Estimated Total Manufacturing Cost For the Year Ended December 31,2016 Direct material: \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Beginning materials inventory } & $ & 0 & \\ \hline & & & 0 & \\ \hline \multicolumn{2}{|c|}{ Cost of material available } & & 0 & \\ \hline Less: & & & 0 & \\ \hline \multicolumn{2}{|c|}{ Total materials used } & & 0 & \\ \hline Less: & ^ & & 0 & \\ \hline \multicolumn{2}{|c|}{ Direct materials used } & & & $ \\ \hline \multicolumn{2}{|c|}{ Direct labor } & & & 0 \\ \hline \multicolumn{5}{|c|}{ Manufacturing overhead } \\ \hline \multicolumn{2}{|c|}{ Indirect material } & & 0 & \\ \hline \multicolumn{2}{|c|}{ Building rent } & & 0 & \\ \hline \multicolumn{2}{|c|}{ Machinery rent } & & 0 & \\ \hline & v^ & & 0 & \\ \hline \multicolumn{2}{|c|}{ Total manufacturing overhead } & & & 0 \\ \hline \multicolumn{2}{|c|}{ Total manufacturing costs } & & & $ \\ \hline \multicolumn{4}{|c|}{ Round answer to two decimal places. } & \\ \hline \multicolumn{2}{|c|}{ Product cost per unit } & $ & 0 & \\ \hline \end{tabular} b. Prepare an estimated income statement that would provide the target amount of profit for 2016 . c. wnat unit sales price should Innovation charge for the new product? Please answer all parts of the