Dewitt Corporation needs to set a target price for its newly designed product M14M16. The following data relate to this new product.

(Blank)	Per Unit	Total
Direct materials	$18
Direct labor	$42
Variable manufacturing overhead	$15
Fixed manufacturing overhead		$1,280,000
Variable selling and administrative expenses	$5
Fixed selling and administrative expenses		$1,040,000

These costs are based on a budgeted volume of 80,000 units produced and sold each year. Dewitt uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 25%.

(a) 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	$______________?
Total cost per unit	$______________?

(b) Compute the desired ROI per unit for M14M16. (Round answer to 2 decimal places, e.g. 10.50.)

Desired ROI

$_____________ per unit

(c) Compute the target selling price for M14M16. (Round answer to 2 decimal places, e.g. 10.50.)

Target selling price

$_________________?

(d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,100 M14M16s are sold during the year.(Round answers to 2 decimal places, e.g. 10.50.)

Variable cost per unit	$______________?
Fixed cost per unit	$______________?
Total cost per unit	$______________?

(Please answer all of the parts)