Product Pricing Using the total cost Concept; Differential Analysis Report for Accepting Additional Business

Twilight Lumina Company recently began production of a new product, the halogen light, which required an investment of $$1,620,000$ in assets. The costs of

producing and selling $8,100$ halogen lights are estimated as follows:

Variable costs per unit:

Fixed costs:

Factory overhead $$324,000$

Selling and admin. exp. $162,000$

Twilight Lumina Company is currently considering establishing a selling price for the halogen light. The president of Twillight Lumina Company has decided to

use the cost$-$plus approach to product pricing and has indicated that the halogen light must earn a $20\%$ rate of return on invested assets.

Required:

Note: Round all percentages to two decimal places then use in subsequent computations, if applicable. Round all dollar amounts to the

nearest dollar.