using one of these methods

Question 6: 6 Points) B2,C1,C2 Lethal Industries has recently patented a new product called MaxiDrive, an automobile oil for maximum engine performance. The following annual information was developed by the company's controller for use in price determination: Total Costs Unit Costs Total variable production cost 180,000 18 Fixed overhead Total production costs 240,000 60,000 6.2 24 Selling, general, and administrative expenses Selling expenses 40,000 General expenses 20,000 Total selling, general, and administrative expenses 60,000 Total cost and expenses 300,000 4 2 6 30 The desired profit for the period is 300,000 and the annual demand for the product is expected to be 10,000 quarts. Round answers to nearest two decimal places. a. Prepare the formulas for computing the selling price for one quart using the gross margin pricing method. (3 Points) b. Computing the selling price for one quart using the return on assets pricing method, if the company uses assets totaling $800,000 in producing the quarts and expects a 20% return on those assets. (3 Points) Paragraph Use Markup Percentage and Gross Margin-Based Price formulas Styles Markup Percentage Desired Profit + Total Selling, General, and Administrative Expenses Total Production Costs Markup Percentage = Gross Margin-Based Price = Total Production Costs Per Unit+ (Markup Percentage x Total Production Costs Per Unit) Gross Margin-Based Price = Express the gross margin-based price is to state the formula in terms of a company's desire to recover all of its costs and make a profit. Gross Margin-Based Price Total Production Costs + Total Selling, General, and T Administrative Expenses + Desired Profit Total Units Produced Styles Paragraph Determine gross margin-based price on a per unit basis Gross Margin-Based Price = Direct Materials + Direct Labor + Variable overhead + Fixed overhead + Selling, General, and Administrative Expenses + Desired Profit Per Unit Gross Margin-Based Price = B. Return on assets pricing method Return on Assets -Based Price Total Costs and Expenses per Unit+ (Desired Rate of Return x Cost of Assets Employed per Unit) Return on Assets -Based Price = Or Return on Assets -Based Price = + [(Total Production Costs + Total Selling, General, and Administrative Expenses) Units to be produced] [Desired Rate of Return x (Total Cost of Assets Employed Units to be produced)]