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Twilight Lumina Company recently began production of a new product, the halogen light, which required an investment of $ 1 , 6 2 0 ,

Twilight Lumina Company recently began production of a new product, the halogen light, which required an investment of $1,620,000 in assets. The costs of producing and selling 8,100 halogen lights are estimated as follows:
Variable costs per unit: Fixed costs:
Direct materials $81 Factory overhead $324,000
Direct labor 18 Selling and admin. exp. 162,000
Factory overhead 36
Selling and admin. exp. 32
Total $167
Twilight Lumina Company is currently considering establishing a selling price for the halogen light. The president of Twilight Lumina Company has decided to use the cost-plus approach to product pricing and has indicated that the halogen light must earn a 20% rate of return on invested assets.
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