1) Calculate Total variable cost , total fixed cost per unit and total cost per unit . .2) Calculate desired markup per unit for M14-M16 . 3) CALCULATE target selling price for M14-M16. 4) Assuming that 1980,400 M14-M16 are produced during the year, Calculate the variable cost per unit and total cost per unit .

Lafleur Corporation needs to set a target price for its newly designed product, M14-M16, The following data relate to it: Per Unit Total Direct materials $14 Direct labour Variable manufacturing overhead Fixed manufacturing overhead $29 6.000 Variable selling and administrative expenses Fixed selling and administrative expenses 1,984:000 These costs are based on a budgeted volume of 248,000 units produced and sold each year. Lafleur uses cost-plus pricing to set its target selling price. The markup on the total unit cost is 30%% M14-M16