Google wants to develop a laptop to compete with Apples MacBook Pro. Google believes the price of this model must be no more than Apples 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

Required: 1. Compute Googles total cost per unit if 20,000 units are produced. 2. Determine Googles dollar markup per unit. 3. Determine Googles selling price per unit.