P$4.($cost$-$plus pricing$)$ Coyote corporation produces air purifiers. The following per unit cost

information is available: direct materials $$10,$ direct labor $$20,$ variable manufacturing overhead

$$25,$ variable selling and administrative expenses $$15.$ Fixed selling and administrative expenses

are $$200,000,$ and fixed manufacturing overhead is $$100,000.$

Instructions:

Using a $40\%$ markup percentage on the total cost per unit and assuming $10,000$ units,

compute the target selling price.

Using a $50\%$ markup percentage on the total cost per unit and assuming $20,000$ units,

compute the target selling price.