$($Appendix $12$A$)$ Qualls Company makes a product that has the following costs:

$\backslash$table$[[,$Per unit,Per year$],[$Direct materials,$$17\mathrm{.}30,],[$Direct labour,$13\mathrm{.}00,],[\backslash$table$[[$Variable manufacturing$],[$overhead$]],4\mathrm{.}20,],[\backslash$table$[[$Fixed manufacturing$],[$overhead$]],,],[\backslash$table$[[$Variable SG&A$],[$expenses$]],2\mathrm{.}00,],[$Fixed SG&A expenses,,$]]$

The company uses the absorption costing approach to cost$-$plus pricing. The pricing calculations are based on budgeted production and sales of $48,000$ units per year.

The company has invested $$360,000$ in this product and expects a return on