Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry Inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 24% on all Investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Standard Cost Standard Quantity or Hours 4.0 yards 2.4 hours 2.4 hours Direct materials Direct labor Manufacturing overhead (V5 variable) Standard Price or Rate $ 2.70 per yard $ 8.00 per hour $ 12,50 per hour $ 10.80 19.20 Total standard cost per pad $ 60.00 The only variable selling and administrative expense will be a sales commission of $9 per pad. Fixed selling and administrative expenses will be (per year) Salaries Warehouse rent Advertising and other $ 5 82,000 0,000 600.000 Total 732,000 d. Because the company manufactures many products, no more than 38,400 direct labor-hours per year can be devoted to production of the new sleeping pads. e. Manufacturing overhead costs are allocated to products on the basis of direct labor-hours a-2. Compute the markup that the company needs on the pads to achieve a 24% ROI if it sells all of the pads it can produce using 38,400 hours of labor time. Required ROI Investment Selling and administrative expenses Total Unit product cost per pad Unit sales Total production cost Markup percentage b. Using the markup you have computed, prepare a price quotation sheet for a single sleeping pad, (Round your answers to 2 decimal places.) 10.80 19.20 30.00 Direct materials TS Direct labor Manufacturing overhead Unit product cost Add markup Target selling price $ 60.00 75.00 135.00 0-1. Assume that the company is able to sel all of the pads that it can produce. Prepare an income statement for the first year of activity. INCOME STATEMENT Selling and administrative expenses Total selling and administrative expense 0-2. Assume that the company is able to sell all of the pads that it can produce. Compute the company's ROI for the year on the pads, Margin Denominator Numerator Margin 01% Turnover Turnover MacBook Pro