Wilderness Products, Inc., has designed a self-Inflating sleeping pad for use by backpackers and campers. The following Information is avallable about the new product: a. An Investment of $1,350,000 will be necessary to carry Inventories and accounts recelvable 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 Standard Standard Quantity or HoursPrice or Rate Cost 4.0 yards 2.70 per yard 10.80 19.20 2.4 hours 12.50 per hour 30.00 Direct materials Direct labor Manufacturing overhead (15 varlable) 2.4 hours 8.00 per hour $60.00 Total standard cost per pad The only varlable selling and administrative expense will be a sales commisslon of $9 per pad. Fixed selling and administrative expenses will be (per year): C. $82,000 50,000 600,000 Salarles Warehouse rent Advertising and other 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. Manufacturing overhead costs are allocated to products on the basis of direct labor-hours. e. 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 sales Total production cost Markup percentage c 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 Numerator Denominator Margin Turnover ROI