Wilderness Products, Incorporated, 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 $$1,800,000$ 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 $22\%$ on all investments.

b$.$ A standard cost card has been prepared for the sleeping pad, as shown below:

$\backslash$table$[[,$Standard Quantity or Hours,Standard Price or Rate,Standard Cost$],[$Direct materials,$12$ yards,$$3\mathrm{.}60$ per yard,$$43\mathrm{.}20$