Please Note: The picture is for reference and the actual question has been typed out below. Thank YouP22-2A What is the total cost per unit with a budgeted volume of 50,000 units?A $125 B $130 C $135 D $140

st-plus pricing to P22-2A Lovell Computer Parts Inc. is in the process of setting a selling price on a new com- me various amounts. ponent it has just designed and developed. The following cost estimates for this new compo- nent have been provided by the accounting department for a budgeted volume of 50,000 units. Per Unit Total Direct materials $50 Direct labor $26 Variable manufacturing overhead $20 Fixed manufacturing overhead $600,000 Variable selling and administrative expenses $19 Fixed selling and administrative expenses $400,000 Problems: Set A Lovell Computer Parts management requests that the total cost per unit be used in cost-plus pricing its products. On this particular product, management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of $1,000,000. Instructions (Round all calculations to two decimal places.) (a) Compute the markup percentage and target selling price that will allow Lovell Com- puter Parts to earn its desired ROI of 25% on this new component. (b) Assuming that the volume is 40,000 units, compute the markup percentage and target (b) Target selling price selling price that will allow Lovell Computer Parts to earn its desired ROI of 25% on $146 25 this new component