Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation's expected annual volume of 500,000 units:

The company has a desired ROI of 25%. It has invested assets of $24 million.
Instructions
(a) Calculate the total cost per unit.
(b) Calculate the desired ROI per unit.
(c) Calculate the markup percentage using the total cost per unit.
(d) Calculate the target selling price.

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Per Unit $17 Total Direct materials Direct labour Variable selling and administrative expenses Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $360,000 4 150,000