Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation:

The company has a desired ROI of 20%. It has invested assets of $51 million. It expects to produce 3,000 units each year.
Instructions
(a) Calculate the cost per unit of the fixed manufacturing overhead and the fixed selling and administrative expenses.
(b) Calculate the desired ROI per unit.
(c) Calculate the target selling price.

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Per Unit $380 290 72 Total Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,800,000 324,000