$1.$ Google wants to develop a laptop to compete with Apple$$s MacBook Pro. Google believes the price of this model must be no more than Apple$$s price of $$1,199$ per unit to be competitive. Google expects to sell $20,000$ units of this laptop model and has a target markup percentage of $25\%.$ Assumed data for Google follow. Google uses the total cost method in setting its laptop price.

Variable costs

Per unit

Direct materials

$$490$

Direct labor

$60$

Overhead

$140$

Selling, general, and administrative

$10$

Fixed costs

Annual total

Overhead

$$2,500,000$

Selling, general, and administrative

$1,500,000$

Compute:

$$ Compute Google$$s total cost per unit if $20,000$ units are produced.

$$ Determine Google$$s dollar markup per unit.

$$ Determine Google$$s selling price per unit.