Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14M16.

Variable cost per unit
Fixed cost per unit		$30
Total cost per unit

Compute the desired ROI per unit for M14M16.

Compute the target selling price for M14M16.

Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,750 M14M16s are produced and sold during the year.

Variable cost per unit
Fixed cost per unit		$40
Total cost per unit

National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Total Per Unit $26 $44 $15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,377,000 $ 5 $ 1,053,000 These costs are based on a budgeted volume of 81,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%